Employee Safety for Staffing Companies & PEOs

Table of Contents

Introduction

Objectives/Agenda DSH Resources

Tab 1 – PowerPoint Slides

Definition 2 Best Practices 5 Legal Issues 11

Tab 2 – Sample Documents

Contract 18 Service Agreement 26 Safety Inspection Checklist 28 Safety Handbook 32

Tab 3 – Regulations and Law

OSHA Regulations 51 VSSR Decision 59 Fact Sheets 68 BWC Policy (in-process) 71

Tab 4 – Additional Resources

Comparison Chart 83 Internet Websites 85

August 2007 Printed within BWC

Objectives

• Best practices for staffing companies & PEOs, including: How to reduce injuries, illnesses, and workers’ compensation

costs, Improving communication between staffing organizations and host

companies, Understanding OSHA requirements for safety and health, legal

issues, and OSHA recordkeeping, Safety evaluation of host/client Understanding NCCI classifications

• Differences between PEO and staffing company (legal, ownership, and responsibilities)

• Available resources Agenda

8:30 Introduction/Icebreaker Definitions and Accepted Terminology Best Practices 10:00 Break 10:15 Legal Issues Resources Summary/Final Thoughts 12:00 Class Dismissed

Resources Available from the Division of Safety & Hygiene (DSH) Libraries

(800) 644-6292 (614) 466-7388 library@bwc.state.oh.us

www.ohiobwc.com

Safety training:

• Safety talks, outlines and scripts - DSH Safety leader’s discussion guide, Training Center’s One-hour safety presentations, reference books, web resources

• Videos – hundreds of safety and health topics • Books and articles on training techniques

Machine and equipment safety:

• Safety standards (ANSI, NFPA, CGA) • Books and articles on power presses, material handling equipment, lockout/tagout, etc.

Sample written programs:

• DSH program profiles and sample written programs • Reference books • Internet resources

Illness and injury statistics:

• Statistics from the U.S. Bureau of Labor Statistics • National Safety Council’s Injury Facts • National Institute of Occupational Safety & Health (NIOSH) studies

Hazard communication and chemical safety:

• Chemical safety information • Material safety data sheets (MSDSs) • Sample written programs • Videos • Internet resources

Safety standards

• American National Standards Institute (ANSI) standards (including standards for construction, machinery and equipment, personal protective equipment)

• National Fire Protection Association (NFPA) fire codes (including the Life Safety Code and the National Electrical Code)

• Compressed Gas Association (CGA) standards Other topics of interest (books, articles, magazines, videos and standards):

• Confined spaces • Electrical safety • Job safety analysis • New employee orientation

• Powered industrial trucks • Respiratory protection • Scaffolds • Spill response

Directories and lists of vendors of safety equipment Occupational Safety & Health Administration (OSHA) regulations Manual of Uniform Traffic Control Devices (MUTCD) Recommendations of useful Internet sites

BWC publications

Saving You Time and Research Requests for copies of OSHA standards, information on starting a safety committee, a video on accident investigation techniques -- these are some of the thousands of inquiries BWC’s Division of Safety & Hygiene (DSH) libraries receive each year. DSH has two libraries to serve you:

• The central library in the William Green Building in downtown Columbus; • The resource center and video library located at the Ohio Center for

Occupational Safety and Health (OCOSH) in Pickerington. Both libraries are open 8 a.m. to 4:45 p.m., Monday through Friday. Your need for information does not require a visit to the library. You can phone, fax, or e-mail your requests and receive a quick response. The central library provides free information services on the topics of occupational safety and health, workers’ compensation and rehabilitation. The OCOSH resource center provides similar services for those who visit OCOSH for meetings and training center classes. The video library offers an extensive collection of videotapes to supplement your organization’s safety and health training program. It is a convenient and popular source for Ohio employers to borrow quality occupational safety- and health-related training aids. Visit our Web site at www.ohiobwc.com. Central Library 30 W. Spring St., Third Floor Columbus OH 43215-2256 1-800-OHIOBWC (614) 466-7388 (614) 644-9634 (fax) library@bwc.state.oh.us OCOSH Resource Center 13430 Yarmouth Drive Pickerington OH 43147 1-800-OHIOBWC Resource center (614) 728-6464 Video library (614) 644-0018

PowerPoint Slides

Employee Safety for Staffing Companies & PEOs

Course ObjectivesBest practices for Staffing Companies & PEOs

Learn to reduce injuries, illnesses, and workers’ compensation costs Improve communication between staffing organizations and host companiesUnderstand OSHA requirements for safety and health, legal issues, and OSHA recordkeeping

Course Objectives (continued)Best practices for Staffing Companies & PEOs

Understand NCCI classifications Evaluate safety of host/client

Differences between PEO and staffing company (legal, ownership, and responsibilities)Available resources

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Course Sections

1. Definitions2. Loss Control Best Practices3. Legal

Part 1Definitions

TerminologyContract worker- Provides a specific service to a

company which must include supervision and assumes more responsibilities than a staffing company.

Staffing- Skilled/unskilled workers sent out under client/host regulations, host watches over worker, manages time/task, may or may not want to hire full-time

Associate is preferable to “temp worker.”

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Terminology (continued)

Onsite- Temporary worker administration at host/client site although the actual task/work performed for the host is supervised by the host company.

Host company is defined as the company that utilizes temporary workers.

Staffing company is preferred to “temp agency.”

PROFESSIONAL EMPLOYER ORGANIZATION

Provide integrated services to manage critical human resource responsibilities and employer riskEstablish and maintain an employer relationship with the employees at the client’s work siteContractually assume certain employer rights, responsibilities and risk

Staffing Employment Agency

BWC defines “as an employer who is in business of employing individuals for the purpose of utilizing the services of the individuals for a temporary period”

Example: BWC contracts with a staffing agency to hire a temporary employee to fill a vacant position

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Similarities of PEOs & Staffing Companies

Specific requirements are spelled out in a contractMight have additional benefits for employees

401Kheath insurance

Similarities (continued)

ResponsibilitiesLocal, state and federal taxesEmployment taxes

WC coverageProvided to employees by the temporary staffing companyMay be provided by PEO

Part 2Loss Control Best Practices

Client Risk AssessmentJob DescriptionsProhibited Jobs

Before Placement AssessmentLoss Prevention Management

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Loss Control best Practices (continued)

Injury Reduction StrategiesClaims ManagementSafety QuestionnaireDrug Testing

Client Risk Assessment

Written procedures for new client:

Details expectations of the client/employer relationshipSegregation of responsibilities and authority

Client Risk Assessment (continued)

WC carrier pre-approval or documentation of notice (sent to carrier of Staffing Company/PEO)Specific job classification-descriptionsIndustries/jobs that will not be included in agreement (restricted jobs)

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Job Description

Good Job Description includes:

Example tasksPPE requirementsSafety requirements (e.g. attend safety orientation)Exclusions (e.g. no operation of press brake)Additional hazards (e.g. confined spaces)

Possible Prohibited Jobs/Industries

Unsupervised JobsRoofingTrenchingHazardous wasteBiological wasteOccupied domicilesFoundry (pours)

Prohibited jobs can be determined by either the PEO/Staffing Agency or its Insurance Carrier.

Before Placement – Assess ClientSafety Training – “Choice Program”Safety ReviewsJob Description/Prohibited JobsOSHA Establishment Search

www.OSHA.govStatisticsInspection DataEnter Company NameState

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Client Risk Assessment

Assessment of client’s WC history

Description of business operationList of states (operating)Copy of 3-yr loss run (minimum)OSHA reportsCopy of existing safety manual(s)

Client Risk Assessment (continued)

Payroll by class code, tax and/or payroll reportsSite assessment of all locations with high hazard exposureEvaluate frequency/severity of claims

Loss Prevention Management –Injury Reduction Strategies

Comply with Loss Prevention Requirements:

Written policies/procedures that must be followed by clientDocumentation of compliance and action taken for non-compliance of clientSafety “needs assessment” conducted with all new clients

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Loss Prevention Management –Injury Reduction Strategies (continued)

Provide some type of loss prevention services Have loss prevention services available for clientPeriodic review of client compliance issues

• Action plan?

Claims Management

Timely notification of all incidents & injuries

Set deadlines for notification • Example: 24/48 hrs after incident

Provide standard forms for all clients

• Have client complete during notification of injury

Claims Management (continued)Initial contact with injured workers who miss at least 3 days; then set up regular contact when IW misses more than 7 daysHave experienced claims manager regularly review all open claims:

Ensure proper managementTreatment plan in place (RTW, rehab, physical therapy, etc.)

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Claims Management (continued)Conduct accident investigations

Serious injuries/deathRepetitive incidents

Periodic reviews with clientRegarding loss runs or claims analysisMinimum: annuallyBest practice: monthlyMake available periodic loss runs/comparison report

Claims Management (continued)

Establish goals with each claim • Work with client to achieve set goals

Address employee complaintsConduct post-agreement safety questionnaire

Possible Safety Questionnaire

1. What safety training did you receive by the host employer prior to starting job?

2. Are you required to wear any personal protective equipment? If so, was it provided?

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Possible Safety Questionnaire (continued)

3. Are you currently performing the job functions as described to you by our staff?

4. Do you feel that there are any unsafe aspects or hazards associated with your job? If so, please explain.

Drug Testing

Minimum of a DFWP Level 1 programPre-employment testingReasonable suspicion of drug usagePost-accident

PROGRAM MUST BE CONSISTENTLY APPLIED!

Part 3Legal Issues

Workers’ CompensationViolation of a Specific Safety Requirement (VSSR) Manual ClassificationsMedical SurveillanceSafety Training

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Legal Issues (continued)

Personal Protective Equipment (PPE)OSHA Requirements

RecordkeepingFines

Other Considerations

Workers’ Compensation

Who is responsible for Workers’Compensation?

Host Employer? Staffing Employer?PEO?

Staffing employer/PEO-hire the employee that is being utilized by the host employer

VSSR

Who will be responsible for a VSSR?

The host employer will be the employer of record in regards to VSSR filing.

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Manual Numbers

Why does the Staffing Agency/PEO need the host employer’s manual number(s)?

BWC legal requirementProper manual claim assignment Payroll reportingBWC ratemakingService fee determination

OSHA Requirements

To whom do the following OSHA requirements apply?

RecordkeepingFinesMedical surveillanceSafety Training (General and Specific)

Recordkeeping

Whoever provides day-to-day supervision of the employee is responsible for recordkeeping.

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Fines

Fines may be levied to the host employer and/or staffing agency/PEO depending on the circumstances.

Medical Surveillance

When medical surveillance or monitoring is necessary, the host employer must offer and perform this requirement.

Medical Surveillance (continued)

The staffing agency/PEO must ensure that the records of the required medical surveillance or evaluations are maintained in accordance with the appropriate OSHA standards.

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Safety Training

The general rule is:

The staffing agency/PEOs are expected to provide some generic training.

The host employer is responsible for providing site-specific training.

Safety Training (continued)

General – OSHA Choice Program

1. Safe lifting practices 2. Ergonomics 3. Personal protective equipment4. Electrical safety5. Machine guarding6. Fall hazards and protection7. Chemical hazard communication

Safety Training (continued)

Who is responsible for site specific training?

The host employer must still certify that the required training has been provided "when the employee has demonstrated proficiency [to the employer] in the work practices involved."

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PPE

Who is responsible for PPE?Host employer is responsible for providing PPE

for site-specific hazards to which employees may be exposed.

PPE can be a contractional issue between the host employer and staffing agency/PEO, but enforcement is the responsibility of the host employer.

Other Legal Considerations

What other Legal Consideration must be considered?

Intentional TortThird Party Liability(subrogation)Criminal Liability

Questions?

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16

Sam

ple Docum

ents

Sample Documents Contract 18 Service Agreement 26 Safety Inspection Checklist 28 Safety Handbook 32

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AGREEMENT

This Agreement is entered into this day of , 2006 by and between Staffing Company , located at Staffing Company’s address (hereinafter referred to as “XYZ”, and Host Company , whose principal place

of business is located at Host Company’s address (hereinafter referred to as “Client”).

Whereas, XYZ is engaged in the business of providing professional employer services and employee administration services, and whereas, Client desires to engage XYZ to provide professional employer organization services at Client’s workplace(s) through the assignment to Client’s workplace(s), on a permanent basis, of qualified XYZ employees. XYZ will provide personnel on an indefinite permanent basis as outlined in Article 2 and 3, and other related services as may be agreed upon by Client and XYZ. Client and XYZ acknowledge and agree that the services provided by workers covered or affected by this Agreement would, in the absence of this Agreement, otherwise be provided by employees engaged directly by Client, that such employee workers would be engaged on an indefinite basis, as opposed to a temporary or short-term basis, and that nothing about this Agreement is intended to deprive any current employees or Client of any rights, terms, or conditions of employment which they would otherwise enjoy in the absence of this Agreement. XYZ is willing to provide such services, and Client is willing to contract and engage XYZ, upon the terms and conditions set forth in this Agreement. IT IS THEREFORE AGREED AS FOLLOWS:

1. XYZOPE OF AGREEMENT

1.1 Definitions. As used in this Agreement, the following terms shall have the following meanings:

“Worksite Employee” shall refer to any employee identified in the Employee Census attached hereto and incorporated by reference herein, and any permanent employee hereafter assigned to Client pursuant to this Agreement.

“Employee Census” shall refer to the document of the same title attached hereto and incorporated by reference herein, listing the employees, which XYZ shall lease to Client under the terms and conditions of this Agreement. The Employee Census may be modified from time to time to reflect the addition and removal of individuals from the list of employees leased by XYZ to Client pursuant to this Agreement. This does not include 1099 or contract employees.

1.2 Pre-Agreement Circumstances. Immediately preceding the effective date of this Agreement and up to the date that XYZ issues the first payroll, Client employed the individuals listed on the first Employee Census attached to this Agreement. Client and XYZ have entered into this Agreement in order that those individuals, who were employees of Client immediately prior to the effective date of this Agreement, shall become employees of XYZ upon this Agreement’s execution and XYZ’ issuance of the first payroll, and their services shall thereafter be leased by XYZ to Client.

1.3 Purpose of Agreement. XYZ is engaged in the business of human resources, employee management, personnel staffing, providing benefits to its employees, and providing administrative services required to handle payroll, manage benefits, and related activities, any or all of which services may be required by Client, but the parties agree that nothing about this Agreement is dispositive of XYZ’s status under, or any other matter related to, any regulation of personnel supply, temporary help, or employee management services. XYZ as the administrative employer shall have a right to be involved in the hiring and termination process. The parties acknowledge and agree that Client alone is completely and independently responsible for its own legal rights and obligations.

1.4 Administrative Functions. By entering into this Agreement, it is the intention of the parties that XYZ shall serve as the administrative employer of the Worksite Employees as of the date of the issuance of the first payroll by XYZ, to achieve administrative efficiency. The Worksite Employees shall be assigned to Client, and XYZ shall have no operational control of the Worksite Employees and shall not participate in the assignment of jobs or tasks to Worksite Employees or in the development and implementation of standards of conduct, productivity, or operational procedures.

1.5 Operational Functions. Client desires to take advantage of the services offered by XYZ, and hereby accepts the offer of same. Nothing about Client’s acceptance deprives Client of its right and obligation to direct and control the content of work performed on its premises, consistent with XYZ’s rights and obligations. In fact, because XYZ is also required to supervise other worksites, Client agrees to direct the business-related activities of the XYZ employees assigned to Client’s business. In furtherance of this duty, Client shall have the right to reject the services of assigned workers or request reassignment of said workers by notifying XYZ of same, but Client shall not be permitted to terminate the employment of any XYZ employee. Client has the obligation to notify XYZ promptly of any dissatisfaction with any worker.

2. XYZ RESPONSIBILITIES

2.1 Hiring of Employees: XYZ shall upon execution of this Agreement, hire and employ those individuals listed on the Employee Census provided by Client and those individuals will, pursuant to the terms and conditions of this Agreement, be

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assigned to Client. During the term of this Agreement, Client may refer individuals to XYZ for employment under this Agreement, however, XYZ reserves the right to confirm this employment. XYZ, can, at its diXYZretion, decline to hire an individual referred by Client to XYZ. During the term of this Agreement, Client may identify to XYZ, in writing, those Worksite Employees who have been assigned to Client by XYZ and whose assignment Client wishes to terminate. Such writing shall contain an explanation of the reasons for Client’s determination that a Worksite Employee be unassigned from Client. With respect to the Assigned employees, Client shall fully comply with all local, ,state, or federal law relating to equal employment opportunity and non-diXYZrimination in employment. XYZ shall not be responsible for any action taken by Client with respect to the Assigned Employees, unless Client secures written authorization from XYZ for such action. 2.2 Required Immigration Verification and Payroll: For each Worksite Employee, XYZ shall require complete documentation of eligibility for employment within the United States as required by the Immigration Reform and Control Act (P.L. 99-603 ). XYZ shall pay all XYZ employees and administer all payroll, including documentation and required reporting for payroll, of Worksite Employees, based upon Client’s accounting to XYZ of hours worked during each pay period by each Worksite Employee. Client agrees to maintain records of actual time worked and verify the accuracy of wages and salaries reported to and paid by XYZ. Client acknowledges and understands that, where permitted by applicable law, XYZ may pay Worksite Employees their applicable minimum wage if Client fails to pay XYZ amounts due under this Agreement. XYZ shall be responsible for collection, reporting, and payment of all federal, state, and local payroll , withholding, and unemployment taxes. Notwithstanding the foregoing, Ohio Unemployment Law requires that certain individuals (corporate officers, sole proprietors, general partners, etc. ) must continue to file wages and determine liabilities through Client’s unemployment tax identification number, so accordingly, Client shall be responsible for the payment of all these liabilities. XYZ shall be liable for all the Worksite Employee unemployment contributions as the new employer, .as of the date of employment with XYZ. 2.3 Workers’ Compensation: XYZ shall provide workers’ compensation coverage in Ohio under XYZ’s risk number to all Worksite Employees and shall administer all workers’ compensation claims. At Client’s request, XYZ shall furnish a certificate of proof of workers’ compensation coverage. Client acknowledges that XYZ is not an insurance carrier, broker or agent. 2.4 Benefits: XYZ shall be responsible for all of XYZ’s qualified benefits plans (if applicable) and the administration of such plan(s). Actual Plan documents will control breadth of coverage. Client will not pay any wages, salaries, or other forms of compensation, directly or indirectly, including employee benefits, to Worksite Employees without the written consent of XYZ and XYZ will grant consent only in the cases of certain benefit plans under I.R.C. .Section 414(n). 2.5 Employee Designations: XYZ will designate, from among the Worksite Employees assigned to Client, one or more on-site representatives, subject to Client’s approval, that will not be unreasonably withheld. Client shall assist the on-site representative in maintaining records of actual time worked by Worksite Employees assigned to Client, and in reporting such information to XYZ, and in verifying the accuracy of wages and salaries paid to such Worksite Employees during each pay period. Client will comply with the Fair Labor Standards Act ( 29 U.S.C. section 201 et seq. ) in reporting all overtime worked by each Worksite Employee assigned to Client. On-site supervisors will also assist XYZ in administration of any policies or procedures provided by XYZ to its Worksite Employees as agreed to in this Agreement.

3. CLIENT RESPONSIBILITIES 3.1 Workplace Safety: Client has the duty to maintain a safe workplace and Client shall, at its expense, comply with all federal, state, and local statutes, regulations, laws, or ordinances relative to workplace safety, including but not limited to all applicable regulations of the federal Occupational Safety and Health Administration (OSHA) and under the authority of the federal Workplace Accident and Injury Reduction Act. XYZ shall have no responsibility for workplace safety compliance at Client’s location or facilities (including but not limited to: maintaining the OSHA 300 log, etc.). Failure to maintain a safe work environment shall be a material breach of this Agreement and allows XYZ to immediately terminate this Agreement. Client shall, however, maintain its status as a complying employer with the Bureau of Workers’ Compensation. Client shall immediately report all (including administrative agency) charges, complaints, or inspections to XYZ. If protective equipment is needed or required by statute, law, or regulation, Client shall bear the cost of said equipment. 3.2 Notification of Incidents and Terminations: Client shall immediately notify XYZ of any workplace accidents, injuries, or diseases which occurs in connection with the Worksite Employee’s job or duties performed in the service of Client. Notification of the above injuries, accident, or disease must be made to XYZ immediately by written report, identifying; the Worksite Employee(s) involved, any non-Worksite Employee(s) involved, the injury sustained and by whom, the place where the incident occurred, the time and date of the incident, and a summary of the facts surrounding the incident. Client shall be responsible for recording all appropriate information regarding the incident in the log required by OSHA and for reporting the occurrence or its facts or circumstances as required by any authority. In the event of a workplace accident or injury, Client shall direct the affected Worksite Employee(s) to the approved XYZ managed care facility. Client must report any incident, charge, complaint, law suit, inquiry, etc. from any governmental entity or Worksite Employee to XYZ immediately and cooperate with XYZ to resolve the issue. Furthermore, Client shall immediately notify XYZ in writing and by telephone of any Worksite Employee’s termination. Failure to report an incident, injury or termination may result in additional charges. 3.3 Cooperation and Accommodation: In the event of any incident which results in an injury to a Worksite Employee, Client shall cooperate with XYZ’ workers’ compensation department, officers, employees, representatives, human resource

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department and insurance carrier with regard to administration of claims and return to work program relating to the incident, which cooperation shall include, but shall not be limited to, permitting inspection of Client’s facility and equipment by any person(s) designated by XYZ. Client shall accommodate an injured, Worksite Employee’s need for modified-duty upon returning to work, and the cost of any accommodation that is needed. 3.4 Collective Bargaining: Client shall retain all responsibilities with respect to any and all matters involving any union or unfair labor practices, and collective bargaining. All union disputes and arbitration issues will be handled by Client. Client agrees that XYZ is not the employer of interest for collective bargaining. XYZ agrees to administer the terms of any collective bargaining agreement now in place or negotiated in the future between the union and Client. 3.5 Client’s Business: Client shall be solely responsible for Client’s business operations ( day to day operations, strategic planning, etc. ) the business’ profit and loss, the product and/or services that the Client produces, and everything associated with Client’s area of business except for the administrative provisions contained in this Agreement. Non-competition agreements with Worksite Employees need to be reviewed to reference change to XYZ prior to commencement of XYZ services. Non-competition, non-solicitation or other employment agreements [dated prior to the effective date of the Agreement] with Worksite Employees need to be reviewed to reference change to XYZ prior to commencement of XYZ services. Future employment agreements should reference the XYZ relationship.

3.6 Compliance With Statutes and Regulations. With regard to Worksite Employees, it shall be the responsibility of Client to comply, at its cost, with the requirements of the Americans With Disabilities Act, codified at 42 U.S.C. 12101, et seq., by ensuring that its facilities, work areas, property, and equipment are accessible to any Worksite Employee who is, by reference to the Americans With Disabilities Act, disabled or handicapped, and by making reasonable accommodations, as required by the Act, to facilitate employment of any disabled or handicapped Worksite Employee.. XYZ and Client will cooperate in complying with any and all applicable laws, federal, state, or local, including but not limited to, the Equal Employment Opportunity Act (42 U.S.C. 2000e, et seq.), the Americans With Disabilities Act (42 U.S.C. 12101, et seq.), the Age DiXYZrimination in Employment Act (29 U.S.C. 621, et seq.), and the Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et seq., 2631 et seq., and 2651 et seq., Federal Wage and Hour Regulations, etc.) and any equal employment opportunity and non-diXYZrimination laws. Client agrees to follow XYZ’ policies and procedures to maintain compliance in employment issues.

FMLA Compliance. Client and XYZ acknowledge that this Agreement requires Client’s compliance under the Family and Medical Leave Act, (FMLA), and agree that it is solely Client’s responsibility to determine the size of its workforce, the number of hours of work required to allow Client to meet the market demand for its service and/or product, the XYZhedules for the manpower to meet said demand, and the suitability of any given individual for any specific job duty required to meet said demand, provide said service, and/or produce said product. Accordingly, for purposes of determining whether and to what extent any individual worker is a key employee as defined by the FMLA, whether and to what extent any individual worker can be allowed to take time off away from work for any purpose, and to what extent if any such time off would require the assignment of a replacement worker, Client shall have the primary responsibility for making such determinations, and XYZ shall have the secondary responsibility for implementing such aspects of said determinations as may be appropriate under this Agreement. Nothing about this provision shall be determinative of jurisdictional thresholds under the federal Family & Medical Leave Act(“FMLA”). Client acknowledges and agrees that Client, and Client alone, shall be responsible for any costs associated with compliance with the FMLA, including without limitation the cost of securing a replacement job position for any worker covered by this Agreement, and the cost of any benefit plan coverage associated with FMLA compliance. In addition, for any person placed in a job vacancy associated with an FMLA compliance activity, Client shall pay all costs associated therewith. In the event of termination of this Agreement for any reason, Client shall be deemed to be a successor-in-interest with respect to any FMLA obligations to the employees covered by the Agreement.

3.7 Development of Operational Provisions and Employee Handbook. Client shall be responsible for development of standards of performance, operating procedures, and rules and regulations related to job performance. XYZ will have responsibility to review all materials presented by Client for compliance, make recommendations and necessary revisions, compile the materials for the employee handbook, and distribute the handbook to the Worksite Employees. 3.8 Qualifications, Testing, and Training of Worksite Employees: Client will be responsible for any federal, state or local licensing requirements for any jobs, duties, or tasks to which a Worksite Employee is or is to be assigned, and to investigate each Worksite Employee whom it designates for assignment to its facility and to determine whether a Worksite Employee is licensed, qualified, (including, but not limited to, being in compliance with Department of Transportation rules, Federal Motor Carrier Safety Regulation, etc. ), or properly trained to perform the jobs, duties, or tasks which Client will require of that Worksite Employee. It shall be the responsibility of Client to maintain all records and submit all reports required by any authority in relation to any such licensing, qualification, or training requirements. Client shall not solicit from XYZ, any representation regarding licensing, qualification, or training of any Worksite Employee to perform the jobs, duties, or tasks which are or will be assigned to a Worksite Employee, or the Worksite Employee’s suitability for assignment to Client. Client assumes all responsibility for fees and costs associated with licensing, training, qualification, or testing, required for any Worksite Employee.

3.9 COBRA Compliance Upon Termination. Immediately upon termination of this Agreement, other than by reason of the dissolution of Client or the decision of its directors or shareholders to cease doing business or closing of the facility where employees leased under this Agreement perform services for Client, the Worksite Employees’ employment by XYZ shall terminate and the Worksite Employees shall become employees of Client and Client shall fulfill the requirements of the

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Consolidated Omnibus Budget Reconciliation Act (COBRA, 26 U.S.C. 4980B) for providing continuing health care coverage to the persons who are Worksite Employees at the time of termination of the Agreement.

In the event that this Agreement is terminated by either Client or XYZ, and Client does not immediately replace health coverage, those individuals whose employment by XYZ is being terminated by XYZ (and their eligible spouses and dependents) shall be notified by XYZ of their right, under COBRA, to continue the health care coverage which is applicable to them under the XYZ plan in place at the time of the termination of their employment at XYZ. In such event, Client will pay XYZ an administrative fee in the amount of five hundred dollars per month and shall reimburse XYZ for any direct costs associated with COBRA compliance. Also, in the event of termination of the Agreement, Client shall pay XYZ an administrative fee in the amount of $500.00 per month for any employees previously terminated from Client and still receiving COBRA under XYZ’ plans. 3.10 Compliance with Workers’ Compensation Statute. Client shall be responsible for: maintaining its status as a complying employer under the provisions of the Ohio workers’ compensation laws, Chapter 4123 of the Ohio Revised Code, with respect to its employees other than those leased pursuant to this Agreement; and to keep open Client’s risk number with the Ohio Bureau of Workers’ Compensation (with no payroll reported) with respect to the employees leased pursuant to this Agreement. Client also has the duty to inform XYZ of any new states Client wishes to conduct business in through XYZ. Client must give XYZ at least 30 day notice of Client’s operation in any new state so that XYZ can review the various leasing laws of that state. Client and XYZ agree that some states require Client to provide workers’ compensation to Worksite Employees and understands that XYZ can refuse to do business in any state for any reason. 3.11 Client Benefit Plans. If Client maintains an employee medical benefit plan (or other benefit plan) and does not permit its Worksite Employees to participate in XYZ’ group medical plan (or other plan), XYZ shall be responsible solely for only the vary limited purpose of effecting withholding from the paychecks of participants pursuant to their salary reduction elections under the plan and for transferring such withheld funds in payment of the appropriate premium under the Client plan(s), pursuant to Client’s direction. XYZ shall have no other duties, responsibilities or liability concerning the Client’s medical plan (or other Client benefit plans). XYZ shall not be treated as a plan sponsor or fiduciary for any such Client plans or for any other purpose whatsoever. Client agrees to indemnify XYZ for any and all costs, including but not limited to, and judgements, attorney fees, litigation, etc. that XYZ could incur as a result of Client’s benefit plans. 3.12 Notification to XYZ of Out of State Business: Client will notify and obtain XYZ’ approval 30 days prior to commencing business in states other than Ohio Kentucky and Indiana and shall give XYZ two week notice for Ohio, Kentucky and Indiana. XYZ shall have the option not to lease employees in states other than the original contacting state. XYZ will charge additional costs for any new state Client enters (if XYZ agrees to operate in that state).

4. JOINT RESPONSIBILITIES

4.1 Compliance with Law. It shall be the responsibility of each party to ensure that, with regard to Worksite Employees, its respective employee benefits policies comply with the requirements of all applicable federal, state, and local statutes, regulations, and ordinances, including but not limited to the Employee Retirement Income Security Act (ERISA 29 U.S.C. section 1001 et seq.) and the Internal Revenue Code, 26 U.S.C. section 414(n). The provision of employee benefits or any other service under this Agreement by XYZ to client is not a guarantee with respect to the tax consequences associated with the provision of such benefits or services. Client will pay for any benefits which have accrued or become payable to the Worksite Employees at the time of the termination of this Agreement, including payment of health and / or life insurance premiums for all affected Worksite Employees through the month in which this Agreement is terminated. 4.2 Employment Documentation: XYZ and Client shall be jointly responsible for maintaining the appropriate employment documentation at site for each person designated by Client as a Worksite Employee, following the effective date of this Agreement. 4.3 Record Keeping: XYZ and Client agree to comply with all government imposed record keeping requirements, including but not limited to, all federal, state, and local requirements. Each party specifically assumes the record keeping obligations associated with its respective duties identified within this Agreement. With regard to employee expenses, Client agrees to notify XYZ of whether they are tracking expenses or giving allowances for employee reimbursement. Client agrees to submit timely payroll information to XYZ on a regular, pre-XYZheduled basis.

5. TERM OF AGREEMENT

5.1 Effective Date and Continuation. The term of this Agreement shall commence from the date of XYZ’ issuance of the first payroll and continue for a period of not less than one year. Thereafter, the term shall be year-to-year.

5.2 Termination or Suspension for Non-Payment. XYZ shall have the right to immediately terminate this Agreement or, in the alternative, to suspend the provision of employee leasing services thereunder, upon the occurrence of any one of the following: failure of Client to maintain insurance required by this Agreement; failure to make payment to XYZ of any fees, costs or expenses which Client is required to pay pursuant to this Agreement (such failure to pay shall include the return, for non-sufficient funds or otherwise, of any draft or check drawn by Client and payable to XYZ.);; a change in Client’s business operations or management that would constitute a change in Client’s workers’ compensation risk or any condition that would cause client to fail to meet XYZ’ business risk selection criteria; and failure to follow XYZ’ direction regarding any

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termination or diXYZipline issue. XYZ shall give written notice to Client of termination under this section and such termination shall become effective on the date such notice is given or sent by XYZ. XYZ may suspend provision of services under this section and such suspension shall be effective on the day written notice of suspension is given or sent by XYZ. Client authorizes XYZ to debit Client’s bank account to recover past due payments.

Any suspension of services shall be for an indefinite period and XYZ may, at its diXYZretion, immediately terminate this Agreement during the suspension period by provision of notice as required by this section. Following a suspension of services under this section, provision of services under this Agreement shall resume at the diXYZretion of XYZ, upon payment by Client, by certified funds, of the entire amount of its outstanding balance of fees, costs, or expenses payable to XYZ. Upon termination of this Agreement, XYZ will notify immediately all assigned employees at Client location via certified mail of their termination (at Client’s expense).

If either party is in default of their responsibilities (other than non-payment of fees, costs and expenses, as specified above), as outlined in this Agreement, or for ordinary termination of the Agreement (requiring 30 day written notice prior to the year anniversary), then that party shall be notified in writing, by certified mail of the termination or default and in the case of default, shall have thirty (30) days from receipt of notice to correct the default. If the default is not corrected within the 30-day period, then the contract may be terminated for cause.

5.3 Immediate Termination. This Agreement shall terminate immediately and XYZ shall be relieved of all responsibilities under this Agreement if XYZ determines, in its sole but reasonable diXYZretion, that a material adverse change has occurred in the financial condition of Client or that Client is unable to pay its debts as they become due in the ordinary course of business or upon being notified that Client has filed for protection, or become subject to a filing, under the United States Bankruptcy Code or the decision of its directors or shareholders to cease doing business or a plant closing at the facility where employees leased under this Agreement perform services for Client. In the event Client does file bankruptcy, both XYZ and Client agree that any unpaid compensation earned within 90 days of the bankruptcy filing date shall be treated as, and given the priority of, wages, salaries and commissions under UXYZA, Section 507(3). 5.4 No Third Party Beneficiaries. The parties acknowledge and agree that this Agreement creates no rights for or in favor of any person or third party not a party to this Agreement, and that no such person may place any reliance hereon.

5.5 Terms of Cancellation Notwithstanding anything to the contrary, should Client terminate this Agreement within the first twelve months, Client shall pay XYZ an amount equal to the greater of $50 per week or $17.30 per employee per week multiplied by the number of weeks remaining in the twelve month period. In addition, Client shall pay XYZ Ohio sales tax in the amount of 6% of the gross taxable wages paid to Worksite Employees during the term of the agreement.

Upon termination of this Agreement, all sums due XYZ shall be immediately due and payable, all Worksite Employees shall immediately be deemed to be employees of Client retroactively to the last date that XYZ was timely paid for its services (except where prohibited by applicable law), Client shall immediately assume all obligations of an employer (including workers’ compensation coverage obligations) to the former Worksite Employees which are not in conflict with applicable law and all rights and obligations of either party under this Agreement shall immediately cease, except for those which by law or by the express provisions of this Agreement survive the Agreement’s termination. Client shall indemnify XYZ for any wages or compensation paid or required to be paid to any former Worksite Employees after termination of this Agreement. Client shall maintain sole responsibility for all earned, but unused, paid time off for all Worksite Employees. Client shall also immediately return to XYZ any and all property, equipment, handbooks, manuals and other information provided to Client by XYZ during the term of this Agreement. Where permitted by applicable law, XYZ, upon Client’s written request and at Client’s expense, shall provide Client with a copy of all Worksite Employee personnel files. Notwithstanding the foregoing, and except as expressly limited by this Agreement, each party shall be entitled to exercise all rights and remedies available to it at law or in equity.

6. INSURANCE

6.1 Required Insurance Coverage. At all times during the term of this Agreement, Client shall, at its expense, purchase

and maintain the following insurance coverage, which should not exclude the use of “leased” or “contract” employees (Because many policies specifically exclude lease/contract labor, please check your endorsements carefully to ensure compliance):

A. Commercial Auto Coverage, with policy limits of not less than $1,000,000.00 per accident, including uninsured/underinsured coverage with policy limits equal to the liability limits (“Any Auto” coverage). The insurance required by this subsection shall insure each and every vehicle, which is or will be operated by a Worksite Employee.

B. Commercial General Liability coverage, with general aggregate limits of not less than $2,000,000.00, and occurrence limits of $1,000,000.00 for all other coverage’s, including personal injury.

C. Commercial Umbrella Liability coverage, providing $5,000,000.00 in limits over, above and in addition to primary automobile and general liability policy.

6.2 XYZ as Additional Insured. Each insurance policy, which Client is required to maintain under this Agreement, shall name XYZ as an additional insured, and shall provide for not less than ten (10) days notice to XYZ prior to cancellation for non-payment of premiums, and not less than sixty (60) days notice to XYZ prior to cancellation for any other reason. Client agrees that its insurance coverage is the primary coverage with respect to its Worksite Employees

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.6.3 Additional Coverage. If any employee is to serve or sell alcoholic beverages in the performance of employee’s

duties for Client, Client shall furnish dram shop insurance coverage in the form and amount acceptable to XYZ. Specific industries may require additional coverage naming XYZ as additionally insured. Client should notify all insurance carriers of this leasing arrangement.

6.4 Operation of Uninsured Vehicles. Client will not require, request, or permit any Worksite Employee to operate, within the course and XYZope of the Worksite Employee’s employment, any vehicle which is not insured under the automobile insurance policy required by this Article.

6.5 Required Reporting. Client will report to the appropriate insurer every collision or accident involving any vehicle insured under the automobile insurance policy required by this Article and which is, at the time of the collision or accident, being operated by or under the control or in the possession of any Worksite Employee.

6.6 Certificates of Insurance. Client will obtain annually a certificate(s) of insurance evidencing the coverage which it is required to maintain under this Article and will provide a copy of such certificate(s) to XYZ. Along with the required certificate(s) of insurance, Client will provide to XYZ, a list of all restrictive endorsements, which pertain to such policies.

6.7 Policy Ratings. Client will purchase the insurance policies required by this Agreement from a carrier(s) with a rating of “A” or higher by the A.M. Best Company.

6.8 Failure to Comply. Upon failure of Client to diXYZharge any of its duties under this Article or failure to take any action required of it by this Article, XYZ shall have the right to terminate this Agreement and such termination shall be effective immediately upon the giving of notice of termination.

7. INDEMNIFICATION

7.1 Indemnification. Client shall defend, indemnify, and hold XYZ harmless for and from any and all damages,

judgments, awards, suits, costs, suits, expenses (including legal expenses), or penalties to which XYZ becomes subject as a result of the following:

• Client’s failure to comply with any requirements of this agreement; • Any requirement of any federal, state or local statute, ordinance, regulation or rule, including but not limited to the

Equal Employment Opportunity Act (42 U.S.C. 2000e, et seq.), the Americans With Disabilities Act (42 U.S.C. 12101, et seq.), the Age DiXYZrimination in Employment Act (29 U.S.C. 621, et seq.), etc., as a result of termination of a Worksite Employee’s assignment to Client under Article 3 of this Agreement;

• Any wrongful or negligent act of any Worksite Employee committed while the Worksite Employee was acting in the service of Client pursuant to this Agreement;( including, but not limited to any liquor law violations, criminal acts, etc.);

• Any incident or allegation of theft or dishonesty by a Worksite Employee; • Client’s negligence in diXYZharging its duty under Article 3.8 or any other section of this Agreement to adequately

verify the qualification and suitability for employment of a Worksite Employee, or miXYZlassifying employees as independent contractors by Client.

• Any intentional tort action filed by an employee, and/or for any application or award of workers’ compensation benefits to a Worksite Employee which includes an award for violation of a specific safety requirement (V.S.S.R.) pursuant to Article II, Section 35 of the Ohio Constitution;

• Any incorrect information received from the State of Ohio Bureau of Workers’ Compensation, from the Client, (or any other source) that was relied upon by XYZ in calculating rates for leasing fee purposes;

• Any acts or failures to act by Client which occurred prior to the effective date of this Agreement; or • Client’s misreporting of wages for Worksite Employees which is caused by Client’s provision of incorrect or

incomplete information relative to wages of hours worked by Worksite Employees or by miXYZlassification of employees as exempt.

7.2 Fees and Charges: Client shall indemnify XYZ for any fees, costs, or penalties associated with the licensing, training, qualification, or any other requirement for any Worksite Employee for which liability may be attached to XYZ. 7.3 Client to be Indemnified by XYZ. XYZ shall defend, indemnify, and hold Client harmless for and from any and all damages, judgments, awards, costs, expenses, or penalties to which Client becomes subject as a result of the failure of XYZ to perform any duty required of it pursuant to this Agreement, including but not limited to, payment and reporting of withholding and payroll taxes unless XYZ’ failure to pay such withholding and payroll taxes was preceded by a failure of Client to pay when due the Employee Service Fee provided in Section 8.4 of this Agreement.

8. FEES AND CHARGES

8.1 Conversion Fee. Upon execution of this Agreement, Client shall pay to XYZ a one-time nonrefundable Conversion

Fee as set out on XYZhedule A of this Agreement 8.2 New Hire Enrollment Fee. For each new employee hired and assigned to Client pursuant to Article 3 of this

Agreement, Client shall pay to XYZ an Enrollment Fee as set out on XYZhedule A of this Agreement. (XYZhedule A is hereby incorporated into this Agreement.)

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8.3 Associated Costs. Client shall be responsible for expenses as set out on XYZhedule A charged to XYZ by a service

provider associated with any public records check or drug, alcohol or other testing of a prospective employee. Client shall also pay the amount as set out on XYZhedule A for any nonXYZheduled payroll run. Any cost for corrections on year-end reporting, updates or additional W-2 correction runs, due to Client’s failure to properly inform XYZ of payroll or insurance information, will be charged to Client.

8.4 Employee Service Fee. The Service Fee is the total gross wages earned and payable to Worksite Employees minus reimbursable employee expenses, (i.e. mileage), during the pay period, multiplied by the Employee Service Fee Percentage, in addition to the XYZ Administrative fee listed in XYZhedule A. XYZ's cost for any included item may be greater or less than amounts charged to Client.

Following the end of each pay period, XYZ will provide to Client an invoice of the Employee Service Fee and any additional expenses incurred by XYZ related to the administration of the Worksite Employees. Client agrees to pay XYZ the fee stated and payment will be made at least two business days prior to the payroll pay date via ACH transfer.

Client agrees to pay a $100 penalty if the XYZ invoice is not paid as agreed. A per diem service charge equal to one and one half percent per month of any portion unpaid will be charged. If at any time during this Agreement, at XYZ’ sole diXYZretion, Client is deemed a credit risk, XYZ has the option of requiring earlier pre-payment of amounts due or greater surety due under this Agreement.

In the event the Worksite Employees are to receive any employee benefits as determined by Client, the dollar amount of said employee benefits shall be paid by Client in addition to the amount of the Employee Service Fee provided for in this paragraph.

8.5 Adjustment of Employee Service Fee Percentage. The Employee Service Fee Percentage as originally stated in XYZhedule A shall not be adjusted for a period of twelve (12) months following execution hereof, unless there are changes in federal, state or local tax rates that would effect this Agreement. Thereafter, the Employee Service Fee may be adjusted by XYZ upon provision of thirty (30) days written notice of such adjustment to Client. The adjustment shall be effective for the pay period, which begins after the thirtieth (30th) day following provision of the notice required by this section.

Additionally, if Client chooses and is approved for the XYZ Group Health Care Coverage, XYZ retains the right to adjust rates to cover price increases initiated by the group health insurance carrier effective on the annual renewal date of July of each year. 8.6 Surety: Client to Provide Irrevocable Stand-By Letter of Credit, Bond or Cash Deposit,. In order to provide assurance to XYZ of payment of any sums due from Client pursuant to this Agreement, Client shall cause an irrevocable stand-by letter of credit, bond or cash deposit in the amount of Dollars ($ __ ; one and one half times the estimated Client’s total payroll amount of one pay period, including wages, taxes, and all XYZ fees), and of form and content acceptable to XYZ to be issued by a financial institution acceptable to XYZ, naming XYZ as beneficiary. The amount of the letter of credit, bond or cash deposit may be reassessed annually by XYZ (or more frequently if payroll expenses grow rapidly). In the event of a significant change in the necessary surety amount, XYZ can, in its sole judgment, request additional surety, which the Client agrees to provide within 10 business days of such request by XYZ. W hen at XYZ’ sole diXYZretion XYZ diXYZovers a change in Client’s financial situation. (such as loss of a major customer, down graded credit rating, bankruptcy, etc.); when any change occurs, XYZ may ask for an increased surety amount. XYZ and Client agree that XYZ shall have the right to call any surety (the letter of credit, bond or cash deposit) upon the failure of Client to make payment when due of any amount, which Client is required to pay pursuant to this Agreement.

9. GENERAL PROVISIONS

9.1 Entire Agreement/Modification/Authorization. This Agreement represents the entire Agreement between the parties and supersedes any previous Agreement relating to the subject matter hereof. There are no collateral oral Agreements or understanding relating to its subject matter. All modifications to this Agreement have to be in XYZhedule or addendum form and signed by both parties. No additions, variations, or modifications of this Agreement shall be effective unless in writing and signed by the parties, except that the Employee Census may be modified by the parties from time to time in order to reflect additions or deletions of Worksite Employees therefrom. The individuals executing this Agreement on behalf of XYZ and Client do hereby represent and warrant that they are duly authorized by all necessary actions to execute this Agreement on behalf of their respective principals. 9.2: Survival. The obligations of the parties under Article.3.6 (Compliance with Statutes and Regulations, FMLA Compliance), Article 3.9 (COBRA Compliance upon Termination), Article 4.1 (Compliance with Law), Article 6. (Insurance), and Article 7. (Indemnification), shall survive any termination of this Agreement. In addition, any other provision that by its terms is intended to survive termination of this Agreement shall survive. 9.3 Notices. Unless otherwise authorized herein, all notices or other documents under this Agreement shall be in writing and delivered by certified mail, postage prepaid, addressed to the parties at their last known addresses. Each party shall notify the other of any change of address in writing within 5 days of said change. 9.4 Severability. In an event that any one or more of the terms, provisions, covenants or restrictions contained in this Agreement shall for any reason be declared invalid, void or unenforceable, by a court of competent jurisdiction, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the invalid, void or unenforceable term, provision, covenant or restriction shall be

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replaced by a mutually acceptable valid, legal and enforceable term, provision, covenant or restriction which comes closest to the intent of the parties. 9.5 Non-Waiver. The failure by either party to endorse any term or condition of this Agreement or the acceptance of any payment shall not be deemed a waiver of further enforcement of that or any other term or condition. 9.6 Interpretation. Should any provision of this Agreement be subject to judicial interpretation, it is agreed that the court interpreting or considering such provision not apply the presumption or rule of construction that the terms of this Agreement be more strictly construed against the party which itself or through its counsel or other agent prepared the same, as all parties hereto have participated in the preparation of the final form of this Agreement through review by their respective counsel and the negotiation of changes in language in any provision deemed unsuitable or inadequate as initially written, and, therefore, the application of such presumption or rule of construction would be inappropriate and contrary to the intent of the parties.

9.7 Governing Law. This Agreement shall be construed and applied according to the laws of the State of Ohio. The parties agree and hereby irrevocably submit any suit , action, or proceeding arising out of or related to this Agreement or any of the transactions contemplated by this Agreement to the jurisdiction and venue of the United States District Court for the Southern District of Ohio, Western Division or the jurisdiction and venue of any court of the State of Ohio located in Hamilton County, and waive any and all objections to jurisdiction and venue that they may have under the laws of any other state or the United States.

IN WITNESS WHEREOF the parties have hereunto set their hands on the day and year first written above. CBS PERSONNEL SERVICES LLC d.b.a. EMPLOYEE MANAGEMENT SERVICES By Title By ____________________________________________ Title CLIENT: By Title

PERSONAL GUARANTY: In consideration of the value received from the execution of the foregoing Agreement by

XYZ, the undersigned hereby binds myself as surety for the faithful performance of the above Agreement, and I personally guarantee, absolutely and unconditionally, the prompt payment of the Employee Service Fee under Section 8.4 of this Agreement to XYZ by the above name company, _____________________________________ as is required in the foregoing Agreement.

By _________________________________________ Revised 1/06

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eas, Customer has a need for supplemental personnel and XYZ is a leading supplier of such personnel to ess, in consideration for mutual promises contained herein, the parties agree as follows:

ates: Rates and Customer specific terms for services are contained in the Service Investment. Any job lassifications or professional positions not listed will be discussed as they arise and are mutually agreed pon by the parties.

re-Screening: Any Customer required pre-employment screening would be billed directly to Customer.

arranty: XYZ warrants that it is an independent contractor and its employees are covered by workers’ ompensation. XYZ assumes responsibility for all applicable federal, state, and local withholding taxes, nemployment taxes, social security, and any other payroll charges payable to XYZ employees. If Customer dissatisfied with any employee assigned to Customer by XYZ, notify XYZ within the first two hours worked y that employee and Customer will not be charged for Employee’s time. (Ohio Customers: Services are ubject to Ohio sales tax unless appropriate exemption forms are provided to XYZ.)

irst Aid: As a Customer with XYZ Personnel Services, you shall provide adequately trained person(s) to nder first aid, or a first aid responder for all temporary employees assigned to Customer’s facilities. First aid

upplies will be made readily available to all XYZ temporary employees assigned to Customer’s facilities.

ompliance with Laws: Customer and XYZ agree to abide by all applicable local, state, and federal laws in erformance of this agreement. Customer’s agrees that XYZ employees will be supervised by Customer hen on assignment for Customer.

elationship of the Parties: Because XYZ is an independent contractor, all temporary employees are mployees of XYZ and XYZ retains the right to hire and fire its employees. Customer has the right to ask YZ to remove any XYZ employee for any lawful reason. Customer agrees that no XYZ employees will perate any vehicle (auto, forklift, heavy equipment, etc.) or machinery (other than office machines) without a b description acknowledging this to XYZ and that Customer’s insurance shall be primary and oncontributory for such operation. Customer agrees not to switch a XYZ employee’s job assignment without rst notifying XYZ. Customer accepts responsibility for bodily injury (except workers’ compensation), property amage, fire, collision, or public liability damage claims caused by the actions of any XYZ employee while nder customer’s supervision. Customer agrees and warrants to XYZ that it will maintain compliance with SHA or state-specific required site-specific training and other mandated safety requirements. All injuries

nown to customer and to XYZ employees will be promptly reported to XYZ. No XYZ employee may handle ash, negotiable, or other valuables without the express, written consent of XYZ.

afety: Customer agrees to supply a reasonable safe work environment for XYZ employees. Customer grees to indemnify and hold harmless XYZ from any costs, penalties, or judgments that may result from a ustomer’s safety violation or intentional tort that imposes costs or expenses to XYZ. ime sheet: XYZ’ employee will present a time sheet to customer or customer’s representative for customer erification and signature at the end of every work week. Customer’s signature on the time sheet indicates pproval and acceptance of hours worked as indicated on the time sheet. XYZ will invoice Customer weekly r total hours worked. Customer acknowledges that Customer is responsible for two hours time if XYZ is not otified of an assignment termination prior to start of the assignment. If Customer does not sign time sheets r uses Customer ’s own time reporting system, Customer agrees to pay based on said system subject to ese terms and conditions contained herein.

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• Invoicing: All invoices are due net upon receipt, any invoice paid later than 30 days will be subject to a 1 ½ %

monthly charge. Consistently paying beyond 30 days, may necessitate an increase in bill rate. In the event that Customer files bankruptcy, both XYZ and Customer agree that any unpaid compensation earned within 90 days of the bankruptcy filing date shall be treated as, and given the priority of, wages, salaries and commissions under 11 USCA, Section 507 (3). Customer also agrees to pay all costs that XYZ incurs to collect any unpaid amounts overdue, including, without limitation, reasonable attorney fees. Late payment is considered a material breach of this Agreement and allows XYZ to immediately terminate this Agreement and all work assignments, if not cured within 48 hours.

• Overtime: Legally required overtime will be paid at one and one-half times the base pay rate.

• Hiring of XYZ Employees: XYZ has a substantial and ongoing investment in its employees. Customer acknowledges the importance of XYZ’ employees to the operation of XYZ and agrees (subject to any agreed upon buy-out of employees by Customer attached) that it will not utilize or employ any XYZ employee, or hire any XYZ employee through any other supplier, service, or leasing company, for a period of twenty-six weeks after the date of the employee’s last time sheet from assignment through XYZ, without consent in writing from XYZ. Customer agrees that if Customer desires to utilize or employ any XYZ employee, or hire any XYZ employee through any other supplier, service, or leasing company, on a permanent or temporary basis, the employee will remain on XYZ’ payroll for a minimum of an additional twenty-six weeks from the date of the notification in writing or, in the alternative, the customer will pay XYZ the sum of three thousand dollars ($3000.00) to compensate XYZ for the loss of each employee. (Technical and professional temporary employees, however, have a higher buyout, based upon salary level and specific job assignment.)

• Survival and Headings: Any section that by its nature should survive termination of this Agreement, shall survive termination of this Agreement. Heading of Section are for reference only and shall not be considered in the interpretation of this Agreement.

• Severability: A ruling by any court that one or more of the provisions contained in this Agreement is invalid, illegal or unenforceable in any respect shall not affect any other provision of this Agreement so long as the economic or legal substance of the transactions contemplated hereby is not materially affected. Thereafter, this Agreement shall be construed as if the invalid, illegal, or unenforceable provision had been amended as originally contemplated by this Agreement to the greatest extent possible.

• Term: This agreement shall continue for a one-year term (unless cancelled by either of the parties hereto upon thirty {30} days, written notice to the other during the time of the Agreement) thereafter, this Agreement will be month-to-month.

• First Call: All enclosed information is proprietary in nature. Pricing is based on a “first call” service agreement. All prices are firm from __________, 2006 through __________, 2007 (subject to consistent pay history) unless changes occur in state, federal, local taxes or workers’ compensation, which would affect XYZ’ direct cost of doing business. Should this occur XYZ will notify Customer immediately and any changes would be strictly to cover cost with no provision for additional profit to XYZ.

• Miscellaneous Provisions: This Agreement contains the entire agreement of the parties. The terms of this Agreement shall not be construed against any Party as the drafting party. This Agreement shall by governed by the laws of the state where the services are provided. Any sections that by their nature should survive this Agreement, shall survive this Agreement.

Agreed to by: XYZ Personnel Representative Signature Print Name Title Date

Client Company Representative Signature Print Name Title Date

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INTRODUCTION This checklist should be used by internal XYZ staff to evaluate a site location. It is not a comprehensive review of all actions, which may be taken to minimize damage or loss. Contact your regional Safety Director if there are any program deficiencies. Not every section will apply to every site. Each question is followed by a check box for Yes, No, and Not Applicable. Include comments when No is checked and contact your Safety Director. Name/Branch:____________________________________________ Date:______________________ Client Facility:____________________________________________ Safety Contact:______________ # of Temp. Assoc:__________________________________________ Markup:___________________

SAFETY INSPECTION CHECKLIST Y N N/A SAFETY AND HEALTH PROGRAMS The client maintains injury and illness records for all employees at the facility? Comments: (include Workers comp. code or SIC code and describe what the company does or manufactures)_________________________________________________________________________________ ____________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________ Written safety and health program are in place? Comments:(list programs)_______________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ There is a nearby medical facility where XYZ associates will be sent if injured? Comments:(Name of facility)_____________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________

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Y N N/A EMPLOYEE TRAINING The client conducts site-specific training for XYZ employees before operating equipment or tools? Comments:(list all job positions and/or equipment XYZ employees will be working)__________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ Training is provided for all XYZ employees on emergency procedures? (ie. Fire, injury, etc.) Comments:___________________________________________________________________________________ XYZ employees receive site-specific training before operating a forklift, or other motorized vehicles? Comments:(client must provide training records and sign liability)________________________________________ ____________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________ Employees are trained in Hazard Communication before they handle or are exposed to chemicals? Comments:___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ PERSONAL PROTECTIVE EQUIPMENT AND CLOTHING Safety glasses or other protective eyewear is provided and required to be worn at all times in areas where there is a risk of eye injuries such as punctures, abrasions, contusions, burns or chemical splashes? Comments:___________________________________________________________________________________ ____________________________________________________________________________________________ Hard hats are provided and worn where danger of falling objects exist? Comments:___________________________________________________________________________________ Appropriate foot protection is required where there is the risk of foot injuries from hot, corrosive, falling objects, crushing or penetrating conditions? Comments:___________________________________________________________________________________ ____________________________________________________________________________________________ Hearing protection is provided and/or required for noisy work areas? Comments:(list jobs or locations)_________________________________________________________________ ___________________________________________________________________________________________ Appropriate gloves are required and/or provided for the assignment? Comments:(list type and jobs)____________________________________________________________________ ____________________________________________________________________________________________ XYZ employees are trained, fit tested and receive a medical evaluation before wearing a respirator? Comments:(list jobs and type of mask or respirator)___________________________________________________

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________________________________________________________________________________________________________________________________________________________________________________________ Y N N/A GENERAL WORK ENVIRONMENT All worksites are clean, sanitary, and orderly? Comments:___________________________________________________________________________________ All aisles and passageways are kept clear? Comments:___________________________________________________________________________________ Work areas and surfaces are kept clean and dry? Comments:___________________________________________________________________________________ All work areas are adequately illuminated? Comments:___________________________________________________________________________________ All floor openings are covered or otherwise guarded? Comments:___________________________________________________________________________________ Standard guardrails are provided wherever aisle or walkway surfaces are elevated more than 4 feet above any adjacent floor or ground and on all stairways? Comments:___________________________________________________________________________________ The client provides fall prevention and/or protection for any XYZ employees working at elevations over 4 feet? Comments:(list height and job)___________________________________________________________________ ___________________________________________________________________________________________ ___________________________________________________________________________________________ All trailers are secured from moving when loading and unloading them? Comments:__________________________________________________________________________________ The client provides training and lifting assistance for all XYZ employees required to lift over 50 pounds? Comments:(list weight, job and lifting equipment used)_______________________________________________ ___________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ The client has provided guarding on all equipment with moving parts? Comments:(list equipment and type of guard)________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ The client trains and supplies Lockout/Tagout equipment to XYZ employees who are required to service, maintain, set-up, or clean equipment? Comments:(list jobs)___________________________________________________________________________

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________________________________________________________________________________________________________________________________________________________________________________________ Y N N/A Broken or unsafe equipment or tools are removed from service and is not used? Comments:___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ There is adequate ventilation for employees trained to use welding, cutting or brazing equipment? Comments:___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ XYZ employees are prohibited from working assignments where they have to enter a confined space? Comments: (employees are not permitted to enter pits, vats, tanks, manholes, vessels, silos, etc.)_____________________________________________________________________________________________________________________________________________________________________________________ XYZ Safety Director has been contacted if there are any safety deficiencies? Comments:___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Other safety concerns or comments: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Example of a Good Staffing Company Safety Handbook Purpose 34 Mission Statement 34 Responsibilities 35 Employee Selection 36 Employee Orientation & Training 36 Jobsite Orientation Checklist 37 Safety Rules & Regulations 38

Use of Tools & Equipment 38 Machinery 38 Grinding 39 Electrical Safety 39 Fall Protection 39 Ladders 40 Scaffolds 40 Welding 41 Gas Welding/Cutting 41 Fire Safety 41 Flammable Liquids Storage/Use 41 Excavations 42 Heavy Equipment 43 Forklift Operation 43

Personal Protective Equipment 44 Eye & Face Protection 44 Hearing Protection 45 Protective Clothing 45 Foot Protection 45

Jobsite Safety Inspections 45 Jobsite Safety Inspections Checklist 46 Reporting & Investigating Accidents 47

Investigating Accidents 47 Hazard Determination 48 Container Labeling 48 Material Safety Data Sheets 48 List of Hazardous Substances 48 Employee Information and Training 49 Non-Routine Tasks 49 Informing Contractors 49 Plan Administration 49 Training Acknowledgement 50

Additional Safety Programs 50 Employee Return to Work Programs 51 Written Lockout/Tagout Program 51 Personal Protective Equipment Program 51 Written Respiratory Program 51 Written Hearing Conservation Program 51 Written Confined Space Entry Program 51

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Regulations and L

aw

Regulations (Standards - 29 CFR) Covered employees. - 1904.31

Regulations (Standards - 29 CFR) - Table of Contents

• Part Number: 1904 • Part Title: Recording and Reporting Occupational Injuries and Illness • Subpart: D • Subpart Title: Other OSHA injury and Illness Recordkeeping Requirements • Standard Number: 1904.31• Title: Covered employees.

1904.31(a) Basic requirement. You must record on the OSHA 300 Log the recordable injuries and illnesses of all employees on your payroll, whether they are labor, executive, hourly, salary, part-time, seasonal, or migrant workers. You also must record the recordable injuries and illnesses that occur to employees who are not on your payroll if you supervise these employees on a day-to-day basis. If your business is organized as a sole proprietorship or partnership, the owner or partners are not considered employees for recordkeeping purposes. 1904.31(b) Implementation. 1904.31(b)(1) If a self-employed person is injured or becomes ill while doing work at my business, do I need to record the injury or illness? No, self-employed individuals are not covered by the OSH Act or this regulation. 1904.31(b)(2) If I obtain employees from a temporary help service, employee leasing service, or personnel supply service, do I have to record an injury or illness occurring to one of those employees? You must record these injuries and illnesses if you supervise these employees on a day-to-day basis. 1904.31(b)(3) If an employee in my establishment is a contractor's employee, must I record an injury or illness occurring to that employee? If the contractor's employee is under the day-to-day supervision of the contractor, the contractor is responsible for recording the injury or illness. If you supervise the contractor employee's work on a day-to-day basis, you must record the injury or illness. 1904.31(b)(4) Must the personnel supply service, temporary help service, employee leasing service, or contractor also record the injuries or illnesses occurring to temporary, leased or contract employees that I supervise on a day-to-day basis? No, you and thetemporary help service, employee leasing service, personnel supply service, or contractor should coordinate your efforts to make sure that each injury and illness is recorded only once: either on your OSHA 300 Log (if you provide day-to-day supervision) or on the other employer's OSHA 300 Log (if that company provides day-to-day supervision). [66 FR 6131, Jan. 19, 2001]

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Standard Interpretations - Table of Contents

• Standard Number: 1904; 1904.31; 1904.46; 1904.35; 1904.40; 1904.29; 1904.29(a); 1904.29(b); 1904.29(b)(2); 1904.33

This letter constitutes OSHA's interpretation only of the requirements discussed and may not be applicable to any situation not delineated within the original correspondence.

June 23, 2003 Mr. Edwin G. Foulke, Jr. Jackson Lewis LLP 2100 Landmark Building 301 North Main Street Greenville, SC 29601-2122 Dear Mr. Foulke: Thank you for your April 3, 2003 facsimile and April 10, 2003 letter to the Occupational Safety and Health Administration (OSHA) regarding the Injury and Illness Recording and Reporting Requirements contained in 29 CFR Part 1904. Specifically, you ask OSHA to clarify the recording criteria for cases involving workers from a temporary help service, employee leasing service, or personnel supply service. Your questions have been outlined below followed by OSHA's response. Question 1: Under 29 CFR Section 1904.31, employers who supervise temporary or leased employees at their facility are required to maintain the OSHA 300 Logs for those employees. With respect to those injuries, can the employer keep a separate 300 Log for the company employees and one log for the temporary or leased employees? Response: The log is to be kept for an establishment. Under Section 1904.46 Definitions, an establishment is a single physical location where business is conducted or where services or industrial operations are performed. The controlling employer (using firm) may sub-divide the OSHA 300 Log to provide separate listings of temporary workers, but must consider the separate listings to be one record for all recordkeeping purposes, including access by government representatives, employees, former employees and employee representatives as required by Section 1904.35 and 1904.40 in the Recordkeeping regulation. OSHA's view is that a given establishment should have one OSHA Log. Injuries and illnesses for all the covered employees at the establishment are then entered into that record to create a single OSHA 300-A Summary form at the end of the year. Question 2: Under 29 CFR Section 1904.31, while the standard clearly indicates the 300 Logs must be maintained for supervised temporary or leased employees, it does not indicate who maintains the 301 documents or the first report of injuries, as well as the medical records on those employees. Also, if a temporary or leased employee has days away from work, it is normally the temporary or leased employee provider's contractual responsibility to handle the medical treatment of the employee. The temporary or leased employee provider is the only person/entity to have the information on days away from work. Who is responsible for maintaining the 301 logs or the first report of injury forms as well as the medical records for these employees, assuming that the employee provider can produce the required documents

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to the employer for production in the time periods set forth in the standard? Response: Section 1904.29(a) says: "You must use OSHA 300, 300-A and 301 forms, or equivalent forms, for recordable injuries and illnesses." In addition, 1904.29(b)(2) says: "You must complete an OSHA 301 Incident Report form, or an equivalent form, for each recordable injury or illness entered on the OSHA 300 Log." Therefore, when the workers from a temporaryhelp service or leasing firm are under the day-to-day supervision of the controlling party (usingfirm) the entire OSHA injury and illness recordkeeping responsibility belongs to the using firm. Question 3: Using the facts in Question 2, it is also important to note that an injured temporary or leased employee, who requires days from work, may be replaced by another leased or temporary employee at the work site. From time of the injury, the employer has no information about the return to work status of the injured employee. In fact, the injured employee may be assigned to another employer once he or she is able to return to work. How can the original employer keep accurate 300 Logs when the employee provider has sole access to information on days away from work and return to work status? Response: The controlling employer has the ultimate responsibility for making good-faith recordkeeping determinations regarding an injury and illness to any of those temporary employees they supervise on a day-to-day basis. Although controlling employers ultimately decide if and how a particular case should be recorded, their decision must not be an arbitrary one, but should be made in accordance with the requirements of the Act, regulation, and the instructions on the forms. Therefore, the controlling employer must make reasonable efforts to acquire the necessary information in order to satisfy its Part 1904 recordkeeping requirements. However, if the controlling employer is not able to obtain information from the employer of the leased or temporary employee, the controlling employer should record the injury based on whatever information is available to the controlling employer. The preamble contains a brief reference about OSHA's expectation that the employers share information to produce accurate records, stating that "the two employers have shared responsibilities and may share information when there is a need to do so." (Federal Register p. 6041) Finally, the last question you raised is whether your client or contractor has any requirements under the recordkeeping standard to provide the new contractor the current OSHA 300 Logs for that facility covering those employees who now work for that contractor. Since there was no change of your client's business ownership, he or she needs only to retain the records as per 1904.33 and provide access under 1904.35 and 1904.40. Thank you for your interest in occupational safety and health. We hope you find this information helpful. OSHA requirements are set by statute, standards, and regulations. Our interpretation letters explain these requirements and how they apply to particular circumstances, but they cannot create additional employer obligations. This letter constitutes OSHA's interpretation of the requirements discussed. Note that our enforcement guidance may be affected by changes to OSHA rules. Also, from time to time we update our guidance in response to new information. To keep appraised of such developments, you can consult OSHA's website at http://www.osha.gov. If you have any further questions, please contact the Division of Recordkeeping Requirements, at 202-693-1702. Sincerely, John L. Henshaw Assistant Secretary

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Standard Interpretations - Table of Contents

www.osha.gov

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Standard Interpretations 02/03/1994 - Employers' responsibilities towards temporary employees.

Standard Interpretations - Table of Contents

• Standard Number: 1910.1200

February 3, 1994

Mr. Michael F. Moreau National Employment Service Corporation 95 Albany Street Suite 3 Portsmouth, New Hampshire 03801

Dear Mr. Moreau:

This is in response to your inquiry of May 3, concerning the Occupational Safety and Health Administration's Hazard Communication Standard (HCS), 29 CFR 1910.1200.

Your question concerns clarification on employers' responsibilities towards temporary employees, particularly in regard to the HCS. Your questions will be answered in the order that you presented them:

1. Who is responsible for hazard communication training of the temporary employee. The [temp] agency or the client employer?

OSHA considers temporary employment agencies who send their own employees to work at other facilities to be employers whose employees may be exposed to hazards. Since it is your company, which maintains a continuing relationship with its employees, but another employer (the client) who creates and controls the hazards, there is a shared responsibility for assuring that your employees are protected from the workplace hazards. The client has the primary responsibility of such protection. The "lessor employer" likewise has a responsibility under the Occupational Safety and Health Act.

In meeting the requirements of OSHA's Hazard Communication standard the lessor employer would, for example, be expected to provide the training and information requirements specified by the HCS section (h)(1). Client employers would then be responsible for providing site-specific training and would have the primary responsibility to control potential exposure conditions. The client, of course, may specify what qualifications are required for supplied personnel, including training in specific chemicals or personal protective equipment (PPE). Contracts with your client employer and your employees should clearly describe the responsibilities of both parties in order to ensure that all requirements of the regulation are met.

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2. Who is responsible for the provision and assured use of appropriate personal protective equipment by the temporary employees?

Client employers would be responsible for providing PPE for site- specific hazards to which employees may be exposed. However, again, the client may specify the services that it wants the lessor employer to supply, including provision of PPE for the placed employees. Contracts with the client employer should clearly describe the responsibilities of both parties in order to ensure that all requirements of OSHA's regulations are met.

3. When medical surveillance or monitoring is indicated, who is responsible for conducting the monitoring and maintaining records?

The client employer must offer and perform the required medical surveillance or evaluations. The lessor employer must ensure that the records of the required medical surveillance or evaluations are maintained in accordance with the appropriate OSHA standards.

4. Is the temporary help service required to maintain cumulative exposure data (eg. 30 day lead exposure, 6 months noise exposure, etc.), when the employee works for several different companies during the year?

Yes, the temporary help service must maintain employee records in accordance with the appropriate OSHA standard (e.g. the Lead standard, the Occupational Noise Exposure standard, etc.). However, the client employer must perform the site characterization and monitoring of exposure to hazardous chemicals on the work site.

5. If 29 CFR 1910.1200(h) requires training on hazardous chemicals in the work area at the time of the initial assignment and whenever a new hazard was introduced into their work place, when does the initial assignment begin and who is responsible for the initial training and the on-going training?

The lessor employer would be expected to provide some generic training and client employers would be responsible for providing site-specific training, or training to update employees on new hazards in the workplace. Please see the answer to question 1 for a further explanation.

6. How does hazard communication training tie into the SIC code 7363?

The current HCS final rule covers all Standard Industrial Classification (SIC) codes. In 1987 the Office of Management and Budget (OMB) prevented OSHA from enforcing HCS in the construction industry. On OMB's advice, OSHA published a statement of concurrence in the Federal Register on August 8, 1988 (Volume 53, page 29822). However, on August 19, 1988, the U.S. Court of Appeals for the Third Circuit invalidated OMB's actions as being outside OMB's authority under the Paperwork Reduction Act (see United Steelworkers of America v. Pendergrass, 855 F.2d 108, (3rd Cir. 1988), Ex. 4-190). As ordered by the Court, OSHA published a notice in the Federal Register on February 15, 1989 (Volume 54 page 6886) to inform affected employers and employees that all provisions of the HCS would

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be in effect in all industries, and set March 17, 1989, as the date for initiation of programmed compliance inspections.

We hope this information is helpful. If you have any further questions please contact the Office of Health Compliance Assistance at (202) 219-8036.

Sincerely, Roger A. Clark, Director Directorate of Compliance Programs May 3, 1993

OSHA Attn: Roger Clark Director of Compliance Programs Room N3468 200 Constitution Ave. N.W. Washington D.C. 22102

Subject: Temporary Help Supply Service

Dear Roger,

I am writing to you as requested by Tom Galassi of your office. I own a temporary service which provided industrial temporary employees to perform various tasks in different plants. There are several questions that I wish you could clarify for me.

1. Who is responsible for hazard communication training of the temporary employee. The agency or the client employer? 2. Who is responsible for the provision and assured use of appropriate personal protection equipment by the temporary employees? 3. When medical surveillance or monitoring is indicated, who is responsible for conducting the monitoring and maintaining records? 4. Is the temporary help service required to maintain cumulative exposure data (eg. 30 day lead exposure, 6 months noise exposure, etc.), when the employee works for several different companies during the year? 5. If 29 CFR 1910.1200(h) requires training on hazardous chemicals in the work area at the tire of the initial assignment and whenever a new hazard was introduced into their work place. When does the initial assignment begin and who is responsible for the initial training and the ongoing training? 6. How does hazard communication training tie into the SIC Code 7363?

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Your clarification of these questions would be appreciated.

Yours Truly, Michael F. Moreau President

Standard Interpretations - Table of Contents

www.osha.gov

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Dear PEO:

The Ohio Bureau of Workers’ Compensation (BWC) issued DP-21 payroll reports for the period covering July 1, 2006 to Dec. 31, 2006, to all private employers in late December. As always, for a professional employer organization (PEO) to calculate its premiums due for this period, it is required to report its clients’ aggregate payroll by manual classification, add it to its own administrative payroll and report them accordingly.

In the coming days, BWC’s PEO unit will request a breakdown of your payroll information by manual class by client per Ohio Administrative Code rule: 4123-17-15. You will minimize your effort if you prepare copies of your payroll while you are completing BWC’s request.

The submission of this payroll information is a vital tool. It assists BWC process the experience from PEO accounts to client accounts. BWC will request a breakdown of your clients’ claims at the same time as usual. This may eventually eliminate the need to submit the Labor Lease Transaction – Payroll (AC18) and Labor Lease Transaction – Claims (AC19) forms with your termination documents.

Also, it is imperative that you take the time to ensure all of your clients are in active status and good standing through the coming payroll period. You can do this by becoming a BWC Web site designee for your clients and reviewing their coverage status online.

Many PEOs have found it beneficial to maintain coverage by paying the $50 administrative fee on behalf of their clients and billing it back along with other services. Each payroll period, numerous employers needlessly incur lapsed days for not paying the $50 minimum for their payroll.

Furthermore, if you are reporting payroll for clients that do not appear on the file BWC has sent to you, please manually add them to the file in the appropriate format.

If you have any questions or concerns regarding this requirement please, call Todd Gropper or Sheryl Thorne at (614) 466-6773.

Sincerely, Mark Tincher Workers’ Compensation Underwriter Supervisor Employer Management Services

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Policy: Temporary Labor Services (Temp) Agencies & Access to NCCI Manual Assignments from Clients Purpose: • To assure proper ratemaking use of NCCI manual assignments by Temp Agencies; • To identify “Employer Information” relating to Manual Number Assignment,

Coverage Status and Rating Plans is releasable Public Records Information; • To reinforce that only the Employer (EMP) or EMP Rep is to be provided with

“Employer Information” regarding Payroll, Premium or Security Deposit information as such information is not releasable Public Records Information.

Note: Temp is considered the employer of staff provided to their clients (see ORC 4123-17-08 D.7 regarding Temp agencies).

• To acknowledge that while client manual number information can be provided by BWC as Public information to the Temp, it is their client(s) who best know and should provide the Temp agencies with NCCI manual/claims information.

Policy: To assure accuracy in Ratemaking, Temp agencies should know the coverage status and maintain records by policy number(s) and NCCI manual number(s) assigned to their own account(s) as well as those assigned to their clients. Temp Agencies are obligated by Ohio Administrative Code (OAC) Rule to use the NCCI Manual number(s) assigned to the clients to whom they have contracted services. Temp agencies should maintain by policy, manual, and payroll amount for each such service contracted using the NCCI manual number(s) assigned by BWC to the client. If Temp Agencies do not have the proper NCCI manual number(s) assigned on its own account as have been assigned by BWC to the Client policy, such NCCI manuals may be added to the Temp accounts without requiring a Rating Inspection provided such client has been properly classified. Otherwise, a Rating Inspection of the Client may be required before adding the manual(s). Claims occurring under such agreements shall be reported by the Temp Agency using their own Policy # for rate making purposes but payroll and claims should be segregated and identifiable to each client based upon the duties being done at the time of contract. Regardless of business type, it is important to always remember that OAC 4123-17-08 D.1. states, in part, “The object of the classification procedure is to assign the one basic classification which best describes the business of the employer subject to certain exceptions described in the rule…..It is the business which is classified, not the individual employments, occupations or operations within a business…..” The client should provide the Temp with information as to where work is performed, the manual number(s) to which payroll should be reported, and/or where an injury occurred as well as what an injured was doing at the time of injury. This will enable the Temp to supply the correct information to BWC in reporting claims and payroll.

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:

Temporary Service Agencies (Temp) A Temp is an employer in the business of employing individuals for the purpose of utilizing their services for a temporary period, i.e.; an employer contracts with a Temp to hire a temporary employee to fill a vacant position while their employee is on disability leave or when extra help is needed. Supreme Court Case Newman v. Industrial Commission (IC) clarified that temporary service agencies are employers under workers’ compensation law. Consequently, when an employee who contracts with a temp agency is injured, the claim is charged to the Temp. This same Supreme Court Case found that if a Violation of Specific Safety Requirements (VSSR) application is filed, it should be filed against the customer (or client) employer. This VSSR claim would be the responsibility of the customer who contracts with a Temp for employees where the injury claim occurred and violation was sited. It is important to remember that VSSR awards paid as a percentage of claims cost will continue to be charged to the responsible policy for as long as the claim cost are incurred, regardless of whether still in the experience period or not. Only the IC can settle a VSSR and this must be done before BWC is permitted to settle the underlying injury claim. ORC Rule 4123-17-08 (D) (7) concerning temporary employers states that temporary help agency workers assigned to their clients be classified the same as if they were direct employees of the client company. Temps must assign workers to the same manual classification their clients use for workers who perform similar tasks. The Temp must obtain the client’s BWC policy number to determine how the client would classify the temporary workers if they were their own employees. In most cases, the proper manual number can be obtained from the person responsible for filing the client’s workers’ compensation payroll reports. Professional Employee Organizations (PEOs) are not the same as Temp agencies as the arrangement with a PEO is intended to be ongoing rather than temporary in nature. The Temp is considered the employer of the temporary staff for complying employer claims. However, if a Temp client does not have workers’ compensation or is a public employer (taxing district), the Temp should base the classification on the occupational hazards of the contract job performed or consult BWC’s employer services for assistance. If the employer client is self-insured (S-I), classify temporary workers being sent to the client in the same manner as if the client were in the state fund as injuries to such workers will remain with the temp. Temp employers should be able to identify individual wages per reporting period, per client employer by policy # and by manual (NCCI) for each period. If an employee is assigned to multiple manuals in a period, there should also be a total available for each

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manual each period. Employers should maintain detailed worksheet(s) for each six-month payroll period which would enable an auditor to follow the payroll of client employees: • by the company they worked for, with the appropriate NCCI manual assigned to that

employee’s wages and subtotaled each period of the audit; • relate the gross payroll of employees assigned to each manual, by client, and be able

to follow the individual employee’s totals per period to the sum of payroll in each manual;

• be able to verify duties of employees that work for more than one employer and/or employers with more than one NCCI manual; and

• be able to verify the manual(s) assigned to claims of a given employer. The above is needed to provide verifiable segregation of all Temp personnel’s wages and manual classification by client, for each six-month reporting period. Gross payroll reported to the Ohio Department of Job and Family Services (ODJFS) should match the gross payroll figures for the Ohio employees for each reporting period. If discrepancies in the payroll figures cannot be explained (i.e., the Temp reports their own Workers’ Compensation claims and payroll but can not segregate it by duties), BWC will use the higher amount and assign such discrepancies to the highest rated manual assigned to the client. Make sure all claims are coded to the proper manual number assignable to the employee at the time of injury. Contact BWC for domestic or sole proprietor or other manual classification information. If you have questions about Understanding Temps, additional information is available by logging on to www.ohiobwc.com or calling 1-800-ohiobwc. Customers Impacted: • Internal Customers:

• IM – EM Central and Field Staff • Compliance and Actuarial Staff • The integrity of WCIS, V-3 and other systems

• External Customers:

• Temporary Service Agencies • Professional Employer Organizations • State Fund Insured and Self-Insured Employers • Accounting, bookkeeping and payroll services doing books for Temps/PEOs

Scenarios: 1. BWC team members (whether IM or EM, central or field, auditing or otherwise) are

often asked how a Temp Agency can obtain the proper manual classifications assigned to their client for payroll and claims reporting purposes “when the client does not know the manual number(s)”.

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• Such a response is often given by someone in a hurry to provide a client quote so as to not loose the business to another provider. However, taking such a shortcut to secure such information may lead to costly mistakes by Temp:

a. This will become evident if the proper manuals are not used and the account is later audited; or

b. Claims charged to the incorrect manual may cause an adverse effect to the Experience Modifier causing the Temp to incorrectly price their services.

• The Temp should be encouraged to contact the client which will always have this information as relates to their own policy and is really the only one knowing exactly what the worker will be doing for them.

2. Temp agencies are often told to contact the local service office or Customer Contact

Center (1-800-ohiobwc) to obtain the policy and manual number if Temp agency “is unable to obtain such information from their client”.

• The following procedure is how one Temp’s risk section and sales staff obtain risk numbers, e-mod and NCCI classes. This info can be obtained in a few minutes as risk numbers can be obtained from the BWC website www.ohiobwc.com and the rest of the information is available from an automated 800 number and should allow any temporary staffing company to obtain the proper NCCI classes in but a few minutes:

o If you need the risk number go to BWC website; select "see more" under Ohio Employers; select "Coverage Look-up" in first column. enter employer name and city to get risk number.

o Call the BWC at 800-644-6292. Follow the automated instructions o Select 2 for employer information; select 1 for automated information;

select 1 for policy number / select 2 for FIN. The automated attendant will provide details on their policy including whether they participate in a group rating program or other premium reducing programs (i.e. drug free workplace, etc...) and the experience modifier for the company (for example, a company in a group rating program may be qualified for a substantially reduced experience modifier whereas penalty rated employers may have a substantially increased experience modifier).

o Select 5 to receive all workers compensation codes for company and the respective rates per $100 of wages.

Temp agencies unable to first obtain the policy number and NCCI manual classification from their client or having other questions should contact the local BWC customer service office or Customer Contact Center (1-800-OHIOBWC). However, if requesting the addition of new manual(s) to the Temp account, please remember:

• Regardless of business type, OAC 4123-17-08 D.1. states, in part, “The object of the classification procedure is to assign the one basic classification which best describes the business of the employer subject to certain exceptions described in the rule…..It is the business which is classified, not the individual employments, occupations or operations within a business…..”

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• A task may be considered incidental and/or includable in a manual already assigned the client’s business and will not otherwise be reportable to it own assigned governing classification; or

• Clients assigned only standard exception manual(s), i.e.; 8810, 8742, etc. with the Temp services provided not contemplated therein (such as delivery driver, long or short haul trucking, janitorial or maintenance staff, etc.) might require adding additional manual(s) to the Temp policy to enable reporting such payroll/claims accordingly;

• Senate Bill 7 restricts releasing claims information but does not restrict providing Employer Information concerning “Coverage Status, Manual Number(s) or Rating Plan”.

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Policy: Staff Leasing/Professional Employer Organizations (PEO) Agencies & Access to NCCI Manual Assignments from Clients Purpose: • To assure proper ratemaking use of NCCI manual assignments by PEO; • To identify “Employer Information” relating to Manual Number Assignment,

Coverage Status and Rating Plans releasable as Public Records Information; • To reinforce that only the Employer (EMP) or EMP Rep is to be provided with

“Employer Information” regarding Payroll, Premium or Security Deposit information as such information is not releasable Public Records Information.

Note: PEOs are considered the employers of staff provided to their clients (see OAC 4123-17-15 D & E regarding PEO agencies).

• To acknowledge that while client manual number information can be provided by BWC as Public information to the PEO, the PEO actually becomes the employer of its PEO client(s) who best know and should provide the PEO agencies with NCCI manual/claims information. Since the PEOs are reporting their client’s payroll, their client doesn’t have to worry about its WC costs except as respects that which remains as a result of “Partial” contracts. It is the PEOs responsibility to segregate out one client’s payroll from another, by manual for audit purposes and to facilitate appropriate Experience Transfers at the conclusion of any PEO contract.

Policy: To assure accuracy in Ratemaking, PEOs should know the coverage status and maintain records by policy number(s) and NCCI manual number(s) assigned to their own account(s) as well as those assigned to their clients. PEO Agencies are obligated by Ohio Administrative Code (OAC) Rule to use the NCCI Manual number(s) assigned to the clients to whom they have contracted services. PEOs must maintain by policy, manual, payroll and claims data for each such service contracted using the NCCI manual number(s) assigned by BWC to the client. If PEO does not have the proper NCCI manual number(s) assigned on its own account as have been assigned by BWC to the Client policy, such NCCI manuals may be added to PEO accounts without requiring a Rating Inspection provided such client has been properly classified. Otherwise, a Rating Inspection of the Client may be required before BWC can add the manual(s). Payroll and Claims occurring under such agreements should be reported by the PEO Agency using their own Policy # for rate making purposes but segregated and identifiable to each client. This is required to facilitate any Experience Transfers back to the Client should the PEO-Employer contract be terminated or modified by either party unless the client contracts to report its own payroll and claims under the PEO agreement. Regardless of business type, it is important to always remember that OAC 4123-17-08 D.1. states, in part, “The object of the classification procedure is to assign the one basic classification which best describes the business of the employer subject to certain

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exceptions described in the rule…..It is the business which is classified, not the individual employments, occupations or operations within a business…..” The client should provide the PEO information on where work is performed, the manual number(s) to which payroll should be reported, and/or where an injury occurred as well as what an injured was doing at the time of injury. This will enable the PEO to supply the correct information to BWC in reporting claims and payroll. By virtue of the PEO becoming the employer as respects a Full or Partial Agreement, the underlying injury claims will be charged against a PEO depending upon the Agreement as to which policy the payroll is being reported against. In the event a Violation of Specific Safety Violation (VSSR) award is granted, the Industrial Commission (IC) will determine to which policy the VSSR should be charged. The IC may or may not order the VSSR award to the same employer policy against which the underlying injury claim is charged but the VSSR award is always based on payments made in the injured workers claim. In general, if the PEO Agreement reports client payroll using the client’s policy number, the client will be responsible for the VSSR and No Coverage claim charges. If the PEO reports payroll under its own PEO policy, the PEO will be responsible for VSSR and No Coverage charges on injuries incurred after the date of the Agreement. It is important to remember that VSSR awards paid as a percentage of claims cost will continue to be charged to the responsible policy for as long as the claim cost are incurred, regardless of whether the underlying injury claim is still in the experience period or not. Only the IC can settle a VSSR claim and this must be done before BWC is permitted to settle the underlying injury claim. In most cases, the proper manual number can be obtained from the person responsible for filing the client’s workers’ compensation payroll reports. Staff Leasing/Professional Employer Organization (PEO) (OAC 4123-17-15) Staff leasing/professional employer organization (PEO) means a person or employer that arranges with one or more client employers under written contract to employ all (Full Lease) or part (Partial Lease) of the work force for a client employer and to place those assigned workers on a permanent basis to the client employer. PEOs are not the same as Temp agencies as the arrangement with a PEO is intended to be ongoing rather than temporary in nature. Claims for non-complying employers who enter a staff leasing/professional (PEO) employer arrangement remain with the non-complying client employer. Non-complying claims are not assigned to the PEO.

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BWC’s PEO unit initially sets up all PEO contract arrangements and completes the appropriate experience transfers in establishing and/or cancelling the PEO/client contracts and accounts in WCIS. After the initial PEO/client relationships are identified and established and the correct employer of record and account activity is transferred by the PEO unit, subsequent change of an erroneous policy number on any new claims in V3 and documentation of all actions in the V3 notes will be done by the appropriate MCS or CSS. Depending upon the circumstances of the claim, correspondence may need to be reissued to the PEO. Refer to Claim Charged to Incorrect Employer for further information. General Information applying to PEOs: The PEO is considered the employer for complying employer claims. However, claims for non-complying employers who enter a staff leasing/professional employer (PEO) arrangement are left with the non-complying client employer. The PEO by law is the Employer of Record (EOR) of the staff leased employees during the PEO agreement. Therefore the PEO have full sign off rights and they (PEO) are the only employer recognized for workers compensation (WC) purposes except for situations involving Partial lease. The PEO industry is very sensitive in matters involving the client employer in WC issues, as this undermines their service. All correspondence should be directed to the EOR listed in V3. Since the PEO unit manually changes the EOR to the PEO when a lease is initiated, the PEO will receive the correspondence. There is no shared employer relationship when it comes to Full PEO Agreements for WC, only one recognized employer, and that is the PEO. If the client employer is self-insured (S-I), classify state fund (SF) PEO workers in the same manner as if the client employer were in the SF unless the PEO is also S-I. Injuries to such SF workers will remain with the SF PEO as a SF claim can not be transferred back to S-I employers at the end of a SF PEO agreement. PEO employers must be able to identify individual wages per reporting period, per client employer by policy # and by manual (NCCI) for each period. If an employee is assigned to multiple manuals in a period, there must also be a total available for each manual each period. Employers should maintain detailed worksheet(s) for each six-month period which would enable an auditor to follow the payroll of client employees: • by the company they worked for, with the appropriate NCCI manual assigned to that

employee’s wages and subtotaled each period of the audit; • relate the gross payroll of employees assigned to each manual, by client, and be able

to follow the individual employee’s totals per period to the sum of payroll in each manual;

• be able to verify duties of employees that work for employers with more than one NCCI manual; and

• be able to verify the manual(s) assigned to claims of a given employer.

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The above is needed to provide verifiable segregation of all PEO personnel’s wages and manual classification by client, for each six-month reporting period. Gross payroll reported to the Ohio Department of Job and Family Services (ODJFS) should match the gross payroll figures for the Ohio employees for each reporting period. If discrepancies in the payroll figures cannot be explained (i.e., the client reports their own Workers’ Compensation claims and payroll), BWC will use the higher amount and assign such discrepancies to the highest rated manual assigned to the client. Make sure all claims are coded to the proper manual number assignable to the employee at the time of injury. Contact BWC for domestic or sole proprietor or other manual classification information. If you have questions about Understanding PEOs, additional information is available by logging on to www.ohiobwc.com or calling 1-800-ohiobwc. Customers Impacted: • Internal Customers:

• IM – EM Central and Field Staff • Compliance and Actuarial Staff • The integrity of WCIS, V-3 and other systems

• External Customers:

• Temporary Service Agencies • Professional Employer Organizations • State Fund Insured and Self-Insured Employers • Accounting, bookkeeping and payroll services doing books for Temps/PEOs

Scenarios: 1. BWC team members (whether IM or EM, central or field, auditing or otherwise) are

often asked how a PEO Agency can obtain the proper manual classifications assigned to their client for payroll and claims reporting purposes “when the client does not know the manual number(s)”. • Such a response is often given by someone in a hurry to provide a quote to a

client so as to not loose the business to another provider. However, taking such a shortcut to secure such information may lead to costly mistakes by PEO:

a. This will become evident if the proper manuals are not used and the account is later audited; or

b. Claims charged to the incorrect manual may cause an adverse effect to the Experience Modifier causing the PEO to incorrectly price their services.

• The PEO should be encouraged to contact the client who will always have this information as relates to their own policy and is really the only one knowing exactly what the worker will be doing for them.

2. PEO agencies are often told to contact the local service office or Customer Contact

Center (1-800-ohiobwc) to obtain the policy and manual number if PEO agency “is unable to obtain such information from their client”.

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• The following procedure is how one PEO Agencies risk section and sales staff obtain risk numbers, e-mod and NCCI classes. This info can be obtained in a few minutes as risk numbers can be obtained from the BWC website www.ohiobwc.com and the rest of the information is available from an automated 800 number and should allow any staffing company to obtain the proper NCCI classes in but a few minutes:

o If you need the risk number go to BWC website; select "see more" under Ohio Employers; select "Coverage Look-up" in first column. enter employer name and city to get risk number.

o Call the BWC at 800-644-6292. Follow the automated instructions o Select 2 for employer information; select 1 for automated information;

select 1 for policy number / select 2 for FIN. The automated attendant will provide details on their policy including whether they participate in a group rating program or other premium reducing programs (i.e. drug free workplace, etc...) and the experience modifier for the company (for example, a company in a group rating program may be qualified for a substantially reduced experience modifier whereas penalty rated employers may have a substantially increased experience modifier.

o Select 5 to receive all workers compensation codes for company and the respective rates per $100 of wages.

PEO agencies should always be able to first obtain the policy number and NCCI manual classification from their client since all PEOs are required to know who their clients are when that information was submitted prior to the client/PEO relationship being certified. PEOs having other question should contact the local BWC customer service office or Customer Contact Center (1-800-OHIOBWC). However, if requesting the addition of new manual(s) to the PEO account, please remember that

• When dealing with a PEO it is important to know whether the contract with their client is “Full” or “Partial” and the manual number(s) assignable to each and whether the client reports claims and payroll using its own policy. “Experience Period” payroll and claims will be transferred back to the PEO client anytime the PEO contract is cancelled unless the PEO is self-insured. However, Temp payroll and claims will always remain with a Temp except for any VSSR claims allowed against the client which will remain the responsibility of the client.

• Regardless of business type, OAC 4123-17-08 D.1. states, in part, “The object of the classification procedure is to assign the one basic classification which best describes the business of the employer subject to certain exceptions described in the rule…..It is the business which is classified, not the individual employments, occupations or operations within a business…..” • A task may be considered incidental and/or includable in a manual already

assigned the client’s business and will not otherwise be reportable to it own assigned governing classification; or

• Clients assigned only standard exception manual(s), i.e.; 8810, 8742, etc. with the PEO services provided not contemplated therein (such as delivery driver, long or short haul trucking, janitorial or maintenance staff, etc.) might require

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adding additional manual(s) to the PEO policy to enable reporting such payroll/claims accordingly;

• Senate Bill 7 restricts releasing claims information but does not restrict providing Employer Information concerning “Coverage Status, Manual Number(s) or Rating Plan”.

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A

dditional R

esources

Best Practice Comparison Table

Requirement/ Best Practice

Staffing Company

PEO Host

Accident Investigations √ √ √ Post-Accident Drug Testing

Strongly Recommended

Strongly Recommended

Strongly Recommended

Basic Safety Training (not site-specific) √ Depends on role

Basic Safety Training (site-specific) Depends on role √ Compliance of Loss Prevention Requirements Maintained with Client

√ √

Copy of Existing Safety Manuals from Host Company

√ Description of Host Company’s Business Operations/States of Operation

√

Investigate Employee Complaints √ Depends on role √ Job Description √ √ √ List of Loss Runs (claims history) of Host Company

Not always practical

3 year

OSHA Establishment Search √ √ OSHA Reports from Host Company

Not always practical √

Payroll by Class Code/Tax & Payroll Reports

√ √

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Requirement/ Best Practice

Staffing Company

PEO Host

Periodic Review of Claims

Review of WC history with establish client to determine if safety intervention or termination of business relationship is necessary

√ √

Post Placement Safety Questions (of employee) √ √ √ Pre-employment Drug Testing

Recommended Recommended Recommended

Prohibited Jobs A tool for reducing exposure to claims,

where a staffing company chooses

not to provide labor for specific NCCI codes and

occupations.

Dictated by Insurers

Safety Reviews of Host Company √ √ √ Site Assessment of High Hazard Exposure; Evaluate Host Claims History

Not always practical √ √

Standardized Forms √ √ √ Timely Notification of all Incidents/Injuries √ √ √ Written Procedures: Client/Employer Relationship/Segregation of Responsibilities

√ √ √

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INTERNET WEB SITES for

OCCUPATIONAL SAFETY & HEALTH INFORMATION January 2007

The Ohio Bureau of Workers’ Compensation provides a variety of safety tools and resources on our web site, www.ohiobwc.com. Click on Safety Services to find out more about what BWC’s Division of Safety & Hygiene offers online. Tools and resources include lifting guidelines, recordkeeping spreadsheets, sample OSHA program guides, and training materials. You’ll also find a longer version of this list of web sites. ASSOCIATIONS RELEVANT TO STAFFING COMPANIESL AMERICAN SUBCONTRACTORS ASSOCIATION (ASA) http://www.asaonline.comThis site is a good resource for Staffing companies that provide labor for subcontractors. ASSOCIATED BUILDERS AND CONTRACTORS (ABC) http://www.abc.org/This site is a good resource for Staffing companies that provide labor for the construction industry. GENERAL CANADIAN CENTRE FOR OCCUPATIONAL HEALTH & SAFETY (CCOHS) http://ccohs.caThis Canadian government site has an extensive Internet directory. There is also a unique feature called “OSH Answers” and a guide to safety-related acronyms. NATIONAL SAFETY COUNCIL (NSC) http://www.nsc.orgVisit this web site for information on safety in the workplace, at home, on the road and in the community. NYCOSH http://www.nycosh.orgThe New York Committee for Occupational Safety & Health offers news releases, links to helpful safety resources, strategies for safer workplaces, information on workplace hazards, workers’ compensation and much more.

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OCCUPATIONAL HAZARDS http://www.occupationalhazards.comThe online version of the magazine Occupational Hazards is filled with today’s headlines, articles, white papers, case studies, and product news. OKLAHOMA STATE UNIVERSITY http://www.pp.okstate.edu/ehsThe Department of Environmental Health & Safety at OSU has an online safety resource library with topics from A-Z. Go to the "Links Library" option. OREGON HEALTH & SCIENCE UNIVERSITY http://www.croetweb.comThis site consists of information on occupations & industries, chemical hazards, workplace safety issues, ergonomic issues, biological hazards, and includes materials in Spanish. VERMONT SIRI http://hazard.comContains a wide variety of resources: MSDSs, an online library of graphics, articles and PowerPoint presentations, e-mail discussion list archives, and a list of safety & health consultants. FEDERAL GOVERNMENT AGENCY FOR TOXIC SUBSTANCES AND DISEASE REGISTRY http://www.atsdr.cdc.gov/Look for information on hazardous substances, emergency response and hazardous waste sites. BUREAU OF LABOR STATISTICS, SAFETY & HEALTH http://www.bls.gov/bls/safety.htmFind national statistics on work-related injuries and illnesses and fatalities. CENTERS FOR DISEASE CONTROL & PREVENTION (CDC) http://www.cdc.govA good resource for general public health issues throughout the United States. Health topics from A-Z give an in-depth look at most communicable diseases as well as topics such as safe driving, violence, and air pollution. ENVIRONMENTAL PROTECTION AGENCY (EPA) http://www.epa.govThe EPA’s web site provides a wealth of information on a wide range of topics. Of particular interest: resources on lead, asbestos, indoor air quality, mold, and school environmental issues. FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) http://www.fema.govFor information on disasters and emergencies nationwide, access this web site. Publications include options for emergency preparedness and prevention, response and recovery, disaster fact sheets, and public awareness information. MINE SAFETY AND HEALTH ADMINISTRATION 86

http://www.msha.govFeatures information on mine safety and health, including noise, dust, statistics, safety hazard alerts and talks, training, regulations, and rescue. NATIONAL INSTITUTE FOR OCCUPATIONAL SAFETY & HEALTH (NIOSH) http://www.cdc.gov/niosh/homepage.htmlNIOSH’s site describes their services and research activities and provides information on many workplace safety and health topics. Most of their publications are available online. NATIONAL LIBRARY OF MEDICINE (NLM) http://www.nlm.nih.govThe world’s largest medical library: a reliable source for medical, health and chemical hazard information. OCCUPATIONAL SAFETY & HEALTH ADMINISTRATION (OSHA) http://www.osha.govOSHA’S web site includes compliance assistance resources, online publications, statistics, OSHA standards & directives, and a very useful A-Z site index. OHIO OHIO DEPT. OF HEALTH http://www.odh.state.oh.us Provides a wide variety of public health information, including occupational and environmental health, women's health, and health resources. OHIO EPA (OEPA) http://www.epa.state.oh.usUse the “Topic Index” to find Ohio EPA regulations and information on permits, hazardous waste, pollution prevention, wastewater, wetlands, and much more. STATE LIBRARY OF OHIO/OHIOLINK http://slonet.state.oh.us/Search the State Library of Ohio’s online catalog which includes BWC’s Division of Safety & Hygiene library books. SPECIFIC (BY SUBJECT) CONSTRUCTION http://www.cdc.gov/elcosh/index.htmleLCOSH is a comprehensive library of construction safety information presented in both English and Spanish with items searchable by trade, hazard, job site, etc. DRUG-FREE WORKPLACE http://www.dol.gov/workingpartners/welcome.html 87

Working Partners for an Alcohol- and Drug-Free Workplace. Provides guidelines on establishing a workplace substance abuse program. Search the Substance Abuse Information Database. From the U.S. Dept. of Labor. EMERGENCY MANAGEMENT GUIDE FOR BUSINESS & INDUSTRY http://www.fema.gov/business/guide/index.shtmPresents a step-by-step approach to emergency planning, response, and recovery for companies of all sizes. From the Federal Emergency Management Agency. ERGONOMICS http://www.ergoweb.comErgoweb’s site offers ergonomics news, a buyer’s guide and case studies, in addition to sources for software and services. HAZARDOUS MATERIALS AND HAZARDOUS WASTE http://www.wetp.org/wetpThe National Clearinghouse for Worker Safety and Health Training is a resource for workers and trainers who are involved in the handling of hazardous waste or in responding to emergency releases of hazardous materials and terrorist actions. INDOOR AIR QUALITY http://www.cal-iaq.orgThe California Indoor Air Quality Program has compiled information on mold and fungi, tools for healthy schools, asbestos, radon, environmental tobacco smoke, volatile organic compounds, and IAQ programs and web sites. MSDS http://www.ilpi.com/msdsTouted as “Where to find material safety data sheets on the Internet”, this site offers links to 100 free sites as well as news, FAQs, and an MSDS glossary. SAFETY MANUALS & SAMPLE WRITTEN PROGRAMS OSHA http://www.osha.gov/dcsp/compliance_assistance/sampleprograms.htmlOSHA provides sample written programs for employers to use as guidance when developing their own customized programs tailored to their specific workplaces. ILLINOIS ONSITE SAFETY & HEALTH CONSULTATION PROGRAM http://www2.illinoisbiz.biz/osha/resource.htmAt this site you will find sample written programs on a variety of topics. Also available are checklists and safety guide books, some in Spanish. NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SERVICES (NIEHS) http://www.niehs.nih.gov/odhsb/home.htmThe NIEHS has a very concise health and safety web page offering manuals, guides, and policies on topics such as laboratory, radiation, and biological safety. SAFETYNET http://medical.smis.doi.gov/prog.htm

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Sponsored by the U.S. Department of the Interior, you will find sample written safety programs to use as templates. Health hazard information and medical reference material is also available. STAFFING AGENCY AND PEO SPECIFIC AMERICAN STAFFING ASSOCIATION (ASA) http://www.americanstaffing.netAt this site you will find information important to staffing companies. NATIONAL ASSOCIATION OF PROFESSIONAL EMPLOYER ORGANIZATION (NAPEO) http://www.napeo.org/At this site you will find information important to PEOs. TEMPORARY WORKERS GUIDELINE http://www.worksafe.vic.gov.au/wps/wcm/connect/WorkSafe/Home/Forms+and+Publications/Publications/import_Placing+Workers+In+Safe+WorkplacesVictorian province in Australia provides written guidelines for maintaining safety of temporary employees. These guidelines are designed for the Victorian province, but the publication as a whole is relevant to any organization wishing to place temporary workers out of harms way.

Ohio Bureau of Workers’ Compensation, Div. of Safety & Hygiene Libraries 30 W. Spring St., L-3, Columbus, OH 43215-2256

(800) 644-6292, press options 2 – 2 - 1 (614) 466-7388 (614) 644-9634 (fax)

E-Mail: library@bwc.state.oh.uswww.ohiobwc.com

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Safety resources for temporary workers, staffing agencies and PEOs March 2007 OSHA letters of interpretation:

1. http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_id=22156&p_table=INTERPRETATIONS

2. http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=INTERPRETATIONS&p_id=24518

Training: Online safety orientation for temporary workers: http://whybesafe.com WRC Certification Program The American Staffing Association (ASA) and RCS Services (RCS) have worked with underwriters, brokers and risk managers to develop a workers' compensation safety and risk management certification program for the staffing industry. http://www.staffingwrcs.com/c.php?p=58 PEO Workers’ Compensation Risk Management Certification The program was developed through the cooperative efforts of WC insurance companies and PEO industry risk managers and insurance brokers with the support of the National Association of Professional Employer Organizations (NAPEO) and the Employer Services Assurance Corporation (ESAC). http://www.certificationinstitute.org/PEOCertWC Book: Staffing Industry Sector Health & Safety Guide Produced for Canada. It can be purchased from ACSESS (1-888-232-4962) or IAPA (1-800-406-4272). Articles (all available from BWC’s Safety & Hygiene library): 1. Bowker, Lindsay Newland, “Employee Leasing: Liability in Limbo?,” Risk

Management, June 1997, 37-47. 2. Burson, Rick, “Personnel Services Have a “Choice”,” Ohio Monitor, Jan/Feb. 1997,

26-29.

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3. “Contractor Safety: What You Need to Know,” Special Report, Keller’s Industrial Safety Report, May 2002, 1-29.

4. Eberts, Howard and William Wilkerson, “Improving the Workplace for Temporary

Employees: It’s the Right Choice,” Job Safety & Health Quarterly, Spring 2001, 35-40.

5. Harding, Anne, “Safety and the Scientific Temp,” Chemical Health & Safety,

March/April 1997, http://pubs.acs.org/hotartcl/chas/97/marapr/saf.html. 6. Harvey, Curtis E., Employee Leasing—Real Safety Help for Small Businesses,”

Occupational Health & Safety, August 1996, 74-79. 7. LaBarr, Gregg, “Contingent Worker Safety: A Full-Time Job in a Part-Time World,”

Occupational Hazards, October 1997, 92-100. 8. Morris, Judy A., “Injury Experience of Temporary Workers in a Manufacturing

Setting: Factors that Increase Vulnerability,” AAOHN Journal, October 1999, 470-478.

9. Naso, Markisan, “Safety Is Never Temporary,” Today’s Supervisor, August 2002, 10-

11. 10. Peirce, Roger, “When Is an Employee Really an Employee?,” Journal of Workers’

Compensation, Summer 1995, 85-92. 11. Ritter, Paul H., “Employee Leasing: Risky Business or Savvy Management?”,

Professional Safety, November 1994, 36-38. 12. “Safeguarding Contract Workers: Relationships and Responsibilities,” OSHA

Compliance Advisor, No. 436, Feb. 2002, 3-6. 13. “Should a Company Require and Provide Medical Evaluations of Its Temporary

Agency Workers?,” Occupational Medicine Forum, Journal of Occupational and Environmental Medicine, November 1997, 1035-1036.

14. Springer, Ken and Mark Garver, “Temporary Agencies, Employee Leasing,” Handout

from a presentation at the BWC Division of Safety & Hygiene Statewide Staff Meeting, Oct. 2000.

15. “Temporary Workers: Getting a Handle on the Risks,” OSHA Compliance Advisor,

No. 313, Dec. 1996, 3-5. 16. “Temporary Workers – Who’s Responsible?,” Keller’s Industrial Safety Report, May

1998, 4-5.

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Associations: American Association of Employee Leasing Services http://www.employee-leasing.org American Staffing Association http://www.americanstaffing.net/ National Association of Professional Employer Organizations http://www.napeo.org

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